House Passes Historic Crypto Bill Regulating Stablecoins

The House passed a bipartisan bill regulating stablecoins which now heads to President Trump's desk as part of his push to make the U.S. the 'crypto capital of the world.' Two other crypto-related bills -- one defining digital asset market structure and another banning a U.S. central bank digital currency -- were also approved by the House but face uncertain futures in the Senate amid partisan tensions and concerns over Trump's personal financial ties to crypto ventures. CNBC reports: The stablecoin bill, passed on a 308-122 vote, sets initial guardrails and consumer protections for the cryptocurrency, which is tied to a stable asset, often the U.S. dollar, to reduce price volatility. It passed the Senate with bipartisan support in June. 'Around the world, payment systems are undergoing a revolution,' said House Financial Services Chair French Hill of Arkansas as lawmakers debated the stablecoin legislation Thursday morning. Hill said the bill will 'ensure American competitiveness and strong guardrails for our consumers.'

After Trump declared it 'crypto week,' the bills were stalled for more than a day amid disagreements among House Republicans about how to combine the legislation. In the end, GOP leaders put the three bills for a separate votes, leaving the fate of the other two bills unclear in the Senate. The internal dissent could foreshadow challenges ahead for the more sweeping crypto legislation that Trump has demanded and the industry has poured millions into advancing. The stablecoin measure is seen by lawmakers and the industry as a step toward adding legitimacy and consumer trust to a rapidly growing sector. Treasury Secretary Scott Bessent said in June that the legislation could help that currency 'grow into a $3.7 trillion market by the end of the decade.'

The bill outlines requirements for stablecoin issuers, including compliance with U.S. anti-money laundering and sanctions laws, and mandates that issuers hold reserves backing the cryptocurrency. Without such a framework, Republicans on the Senate Banking Committee in a statement warned, 'consumers face risks like unstable reserves or unclear operations from stablecoin issuers.' After the votes, House Republicans strongly urged the Senate to take up the second bill, which would create a new market structure for cryptocurrency.

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