Catenaa, Thursday, May 22, 2025- Coinbase CEO Brian Armstrong on Monday called on Congress to pass long-delayed stablecoin legislation before the August recess, warning that up to $240 billion in institutional capital may exit the US without clear federal rules.
Armstrong pressed lawmakers to approve the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in the Senate and finalize the revised Financial Innovation and Technology for the 21st Century (FIT21) Act in the House.
The two bills aim to deliver the first US regulatory framework for the fast-growing stablecoin sector, which is largely dominated by Tether and Circle’s USD Coin.
“The US has a narrow window to act,” Armstrong said, adding that delays are already driving crypto innovation to friendlier jurisdictions overseas.
The GENIUS Act outlines licensing, audit, and reserve requirements for stablecoin issuers.
FIT21 would clarify regulatory authority between the Commodity Futures Trading Commission and Securities and Exchange Commission.
But the GENIUS bill still faces opposition from at least nine Senate Democrats over concerns about anti-money-laundering gaps.
Meanwhile, a Trump-linked stablecoin named USD1 is drawing scrutiny. Senators have questioned whether the token’s promotion – which includes promises of White House access – violates ethics laws.
USD1, issued by World Liberty Financial and backed by US Treasuries, is now involved in a $2 billion investment deal with Binance via Abu Dhabi-based MGX.
Stablecoins processed $27.6 trillion in 2024, outpacing Visa and Mastercard volumes.
Coinbase and other regulated platforms are poised to benefit from formal legislation, which analysts say could help retain US dominance in the digital asset economy.
Congress must now decide whether to lead or let global rivals set the rules.
