Senate Sets May Vote on Stablecoin Regulation Amid Industry Pressure

A long-anticipated bill aimed at regulating stablecoins is reportedly headed for a full Senate vote this May, according to Politico.

Citing an unnamed source, the outlet claims that Senate Majority Leader John Thune is planning to bring the legislation to the floor before Memorial Day.

The proposal, which passed the Senate Banking Committee in March despite some Democratic resistance, seeks to establish a clear legal framework for institutions issuing dollar-backed digital currencies.

Under the bill, firms would need to secure proper licenses and meet reserve requirements to ensure stablecoins can always be redeemed for actual cash.

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Not everyone is on board. Senator Elizabeth Warren has voiced concerns over the bill’s lack of consumer safeguards, arguing it doesn’t go far enough to protect everyday users.

Still, the legislation appears to be on track to receive bipartisan support—something the crypto industry has been hoping for amid calls for regulatory clarity.

Interest in stablecoins continues to grow. Asset management giant Fidelity is reportedly exploring opportunities in the space, while investor Mike Novogratz has gone so far as to suggest stablecoins could eventually challenge the foreign exchange market’s dominance.

Alexander Stefanov