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House Scraps Its Own Stablecoin Bill to Embrace Controversial Trump-Backed Senate Plan
The House of Representatives pulled the plug on its ambitious stablecoin legislation efforts this week, abandoning the STABLE Act despite months of committee work and bipartisan support. The surprising move clears the path for the Senate’s GENIUS Act, which passed in June with a 68-30 vote and carries President Trump’s endorsement.
After the House Financial Services Committee approved the STABLE Act in April 2025, many expected a showdown between the two chambers. The bills had notable differences, particularly around ownership limits and state issuer requirements. The GENIUS Act includes restrictions on nonfinancial public companies owning stablecoin issuers and mandates that state issuers shift to federal oversight once they hit $10 billion in circulation. These provisions weren’t in the House version.
Industry lobbyists had been pushing hard for a unified approach by year-end, apparently getting their wish through an unexpected route. Rather than heading to a conference committee to hash out differences, House leadership decided to embrace the Senate’s framework entirely. This marks the first time stablecoin legislation has advanced this far in Congress, a milestone for crypto regulation that would have seemed impossible just a few years ago.
The GENIUS Act establishes thorough federal rules for payment stablecoins, those digital dollars that actually stay stable (unlike your average altcoin). Think of it as creating traffic laws for digital money – everyone follows the same rules instead of each state making up their own. The legislation requires stablecoin issuers to maintain 100% reserves and follow strict liquidity rules to prevent the kind of risky reserve practices that have plagued the industry. Major stablecoin issuers like USDC already maintain reserves in regulated U.S. institutions and provide monthly attestations to verify backing. For companies already issuing stablecoins under state licenses, they’ll need to shift to federal oversight once they grow beyond the $10 billion threshold. Acceptable reserve assets include U.S. cash, demand deposits, short-term Treasury securities, and certain investment funds to ensure maximum stability.
Federal rules for digital dollars: everyone follows the same traffic laws instead of each state making up their own.
Political dynamics played a significant role in this decision. While both bills enjoyed bipartisan support, the Senate’s stronger backing and clearer path to the President’s desk likely influenced House leaders.
With Trump expected to sign the legislation, the crypto industry might finally get the regulatory clarity it’s been seeking. The move represents a pragmatic choice: take the win that’s available rather than risk derailing progress through prolonged negotiations.
For an industry accustomed to regulatory uncertainty, boring stability never looked so good.
