The regulation of stablecoins in the United States could arrive on the desk of President Donald Trump within two months, as noted by the Executive Director of the Presidential Working Group on Digital Assets Markets, Bo Hines.
Speaking at Blockworks’ Digital Asset Summit, Hines indicated that the market may not fully appreciate how stablecoin legislation can enhance the US economy and reinforce the dollar’s dominance.
Moreover, he believes that regulating stablecoins might significantly influence the trajectory of financial markets for generations to come.
Hines remarked:
“This legislation is going to be monumental; it truly advances the United States, and we are eagerly anticipating that.”
On March 13, the Senate Banking Committee approved the GENIUS Act regarding stablecoin regulation with a vote of 18-6. The decision received bipartisan backing, paving the way for a full Senate vote on the bill.
This legislation outlines regulatory standards for the issuance and oversight of stablecoins in the US, mandating a 1:1 backing for these tokens with US dollars, insured bank deposits, or short-term Treasury bills.
Hines emphasized the importance of the bipartisan support for the bill, pointing out that few issues in Washington allow both parties to collaborate and move the US forward as comprehensively as is currently occurring within the crypto sector.
Lasting changes
Hines stated that the Presidential Working Group on Digital Assets has made “remarkable” strides in the past two months concerning the fulfillment of Trump’s commitments related to cryptocurrency.
Established through an executive order on January 23, the group is tasked with developing a regulatory structure that offers clarity and fosters innovation in crypto.
Hines noted that the group has achieved several milestones. The “30-day milestone” included regulators submitting reports on their rulemaking activities connected to digital assets.
The “60-day milestone,” reached on March 24, will feature regulators’ recommendations for the group. Subsequently, there will be a “120-day milestone,” which will encompass a comprehensive report detailing the actions of agency leaders and steps they can take to eliminate obstacles to institutional adoption and encourage innovation.
Hines also pointed out that regulators have a degree of independence, allowing them to act without constantly requiring an executive order to advance crypto regulation. He further stressed that the group’s role is to ensure that “everyone is on the same page.”
Notable mentions in this discussion
