United States crypto assets. Crypto currency, gold bitcoin, BTC, close-up. Bitcoin coins on black background. Legalization of cryptocurrencies.

Key Takeaways:

Banks resist stablecoin legislation: U.S. banks and senators oppose the GENIUS Act, fearing stablecoins will erode their market dominance.
Stablecoins challenge traditional finance: Faster settlements and lower fees make stablecoins a strong alternative for global payments.
Regulatory debate intensifies: Some policymakers support stablecoins for financial inclusion, while others, like Senator Warren, push restrictions.

Banks and their allies in the U.S. Senate are resisting the GENIUS Act, a bill aimed at regulating stablecoins, fearing it could weaken their financial dominance.

The bill, introduced by Senator Bill Hagerty, needs 60 votes to pass, requiring bipartisan support.

For far too long, certain industries and American consumers have been left in the dark.

That changes today with the GENIUS Act – a bipartisan step forward that will provide regulatory clarity for payment stablecoins. pic.twitter.com/H44W25dJzh
— U.S. Senate Banking Committee GOP (@BankingGOP) March 13, 2025

However, opposition from Senator Elizabeth Warren, a vocal crypto critic, poses a significant challenge.

Warren has proposed an amendment barring tech firms from issuing stablecoins, arguing that such companies should only facilitate payments through regulated banks.

Stablecoins are disrupting traditional finance by offering faster, cheaper transactions, making them attractive for cross-border payments and peer-to-peer transactions.

The Banking Committee’s strong bipartisan passage of the GENIUS Act out of committee brings us one step closer to providing stablecoin issuers with choice between state and national charters & will secure our nation’s competitive edge in the rapidly evolving digital asset space.
— Senator Cynthia Lummis (@SenLummis) March 13, 2025

Federal Reserve Governor Christopher Waller has expressed support for non-bank stablecoin issuers, citing potential benefits for financial inclusion, especially in emerging markets.

Despite resistance, some banks are exploring ways to capitalize on stablecoin technology.

Bank of America CEO Brian Moynihan recently hinted at launching a dollar-pegged digital asset.

At the White House Crypto Summit, Treasury Secretary Scott Bessent highlighted stablecoins’ role in strengthening the U.S. dollar’s global dominance.

With stablecoin issuers now holding more U.S. government debt than Germany and South Korea, the U.S. government may leverage these assets to combat inflation and reinforce the dollar as the world’s reserve currency.