White House Backs Senate’s Stablecoin Bill as Congress Moves Toward Regulation

Congress is moving forward with two competing stablecoin bills, with the White House signaling support for one over the other.

The Senate is advancing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, while the House of Representatives is working on the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. Both aim to establish clear regulations for stablecoin issuers, but they take different approaches to oversight and compliance.

The GENIUS Act, introduced by Senator Bill Hagerty, has already passed the Senate Banking Committee and is heading for a full vote. It seeks to create a structured regulatory framework, allowing smaller stablecoin issuers to operate under state-level supervision while maintaining a 1:1 reserve ratio backed by approved assets. This tiered approach is seen as a way to balance financial stability with innovation, a priority for the Trump administration.

In contrast, the STABLE Act, which is progressing through the House Financial Services Committee, takes a stricter stance by subjecting stablecoin issuers to federal banking regulations. It also mandates stringent audits and oversight, mirroring the compliance standards required of traditional financial institutions. While the bill aims to enhance transparency and accountability, some lawmakers argue that its rigid requirements could stifle competition and hinder the growth of the digital asset sector.

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Insiders suggest that the White House favors the GENIUS Act due to its flexibility and alignment with the administration’s pro-innovation stance. However, if both bills pass in their respective chambers, a Conference Committee may be needed to merge them into a single version. This process could delay the legislative timeline, potentially pushing stablecoin regulation further down the road. With President Trump urging Congress to act swiftly, the GENIUS Act’s faster progress in the Senate puts it in a strong position to shape the future regulatory landscape for stablecoins.

Alexander Stefanov