On July 17, the U.S. House of Representatives advanced a significant piece of cryptocurrency legislation, a bipartisan bill aimed at regulating stablecoins, a type of cryptocurrency that is directly tied to traditional assets such as the U.S. dollar. The measure, which passed with a 308-122 vote, is seen as a major development in the evolving regulatory landscape for digital assets and is expected to be submitted to President Donald Trump for his review. This move aligns with Trump’s vision for the United States to become the ‘crypto capital of the world,’ a goal that has received widespread backing from the cryptocurrency industry.
In addition to the stablecoin bill, two other crypto-related proposals were approved by the House. One of these bills focuses on defining the market structure for digital assets, while the other seeks to ban the development of a U.S. central bank digital currency (CBDC). Despite their passage in the House, the fate of these two bills remains uncertain in the Senate due to partisan tensions and concerns surrounding Trump’s personal financial connections with cryptocurrency ventures.
French Hill, the chairman of the House Financial Services Committee, argued in favor of the stablecoin legislation, stating that it will ‘ensure American competitiveness and strong guardrails for our consumers.’ His comments highlight the growing recognition of the need for regulatory frameworks to balance innovation with consumer protection in the cryptocurrency space. The stablecoin bill includes provisions requiring issuers to maintain reserves backing the cryptocurrency and comply with U.S. anti-money laundering (AML) and sanctions laws. These measures are intended to mitigate the risks of unstable reserves or unclear operational practices associated with stablecoin issuers.
President Trump’s ‘crypto week’ efforts have led to the rapid passage of these legislative proposals, but the House Republicans encountered internal disagreements on how to consolidate the measures. As a result, the three bills were put on separate votes, leaving the other two in limbo regarding their Senate approval. This division among Republicans may signal challenges ahead for more comprehensive crypto legislation that Trump has pushed and that the industry has invested heavily in advancing. Treasury Secretary Scott Bessent has previously indicated that the legislation could contribute to the expansion of the cryptocurrency market to a $3.7 trillion industry by the end of the decade.
As the stablecoin bill moves forward, the industry and consumer advocates are hopeful that it will set a precedent for regulatory clarity. However, the potential impact of the other two bills, particularly the one proposing a ban on U.S. CBDC, remains uncertain. The Senate’s stance, combined with Trump’s personal ties to crypto, could influence the broader regulatory trajectory in the United States. The passage of the stablecoin bill signifies a pivotal moment in the U.S. approach to cryptocurrency regulation, with its potential to reshape consumer protections, market stability, and the overall growth of the digital currency sector.