Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, announced that comprehensive legislation for stablecoins is anticipated to be completed in the upcoming months, highlighting the government’s intention to uphold the US dollar’s supremacy in onchain transactions.
At the Digital Asset Summit in New York on March 18, Hines remarked that stablecoin legislation is “imminent” following the Senate Banking Committee’s recent approval of the GENIUS Act.
The GENIUS Act, an acronym for Guiding and Establishing National Innovation for US Stablecoins, outlines collateralization measures for stablecoin issuers and mandates strict adherence to Anti-Money Laundering regulations.
“We witnessed a strong bipartisan vote from the Senate Banking Committee, […] which was wonderful to see,” Hines stated, adding:
“I believe our colleagues across the aisle also appreciate the need for US leadership in this area and are eager to collaborate with us. That’s what makes this so encouraging. There are very few matters in Washington, DC, where members from both parties can unite and genuinely advance the United States comprehensively.”
Bo Hines (right) speaking at the Digital Asset Summit on March 18.
When inquired about the timeline for passing stablecoin legislation, Hines responded, “I believe these measures could reach the president’s desk within the next two months.”
Currently, Hines feels that the market is underestimating what this legislation “could achieve for the US economy regarding dollar dominance, payment infrastructures, and its impact on financial markets.”
Related: Banks push to block stablecoin legislation over market share concerns
Extending the dollar’s hegemony
The US dollar represents the vast majority of the $230 billion in stablecoins currently in circulation, indicating its continued role as the preferred currency for funding cryptocurrency accounts and facilitating international remittances.
Some industry analysts predict this could change as stablecoins evolve to support multiple currencies; however, for now, digital dollars remain the overwhelming favorite.
Dollar-denominated stablecoins dominate the market.
The Secretary of the Treasury indicated that the administration aims to utilize stablecoins to reinforce the dollar’s position as the global reserve currency, contributing to the urgency behind pushing this legislation forward.
“We are committed to thoroughly considering the stablecoin framework, and as directed, we will ensure the US [dollar] remains the leading reserve currency globally, leveraging stablecoins to achieve this goal,” the Secretary stated at the White House Crypto Summit on March 7.
The Secretary of the Treasury pictured alongside the President at the White House Crypto Summit on March 7.
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