In a move aimed at providing clarity to the digital currency landscape, the House of Representatives has approved a trio of legislative measures designed to establish a regulatory framework for the burgeoning cryptocurrency sector. This comes as President Trump advocates for the United States to become a global hub for crypto innovation.
Among the approved bills is one focused on regulating stablecoins – a type of cryptocurrency designed to maintain a stable value. This legislation, which already garnered bipartisan support in the Senate, is now headed to the President’s desk for consideration. The other two bills, encompassing a broader framework for crypto market structure and a prohibition on the Federal Reserve issuing a digital currency, will now be reviewed by the Senate.
The stablecoin bill, which passed with a 308-122 vote, establishes initial safeguards and consumer protections for stablecoins. These digital currencies are often pegged to stable assets like the U.S. dollar to minimize price fluctuations. Its prior passage in the Senate underscores its bipartisan appeal.
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House Financial Services Chair French Hill (R-AR) emphasized the need for the legislation during Thursday’s debate, stating that it would “ensure American competitiveness and strong guardrails for our consumers” within the evolving global payment systems.
Despite President Trump’s designation of “crypto week,” disagreements among House Republicans regarding combining the bills initially stalled progress. Ultimately, the GOP leadership opted for separate votes on each measure, leaving the fate of the remaining two uncertain in the Senate. This internal discord hints at potential challenges ahead for broader crypto legislation championed by President Trump and heavily lobbied for by the industry.
Lawmakers and industry stakeholders view the stablecoin measure as a crucial step in enhancing the credibility and trustworthiness of the rapidly expanding crypto space. Treasury Secretary Scott Bessent projected in June that the legislation could facilitate the currency’s growth into a $3.7 trillion market by the decade’s end.
The bill outlines requirements for stablecoin issuers, mandating compliance with U.S. anti-money laundering laws and sanctions regulations. Furthermore, it requires issuers to maintain reserves backing the cryptocurrency. The Senate Banking Committee’s Republican members previously warned that without such a framework, “consumers face risks like unstable reserves or unclear operations from stablecoin issuers.”
Following the votes, House Republicans urged the Senate to prioritize consideration of the second bill, aimed at establishing a new market structure for cryptocurrencies.
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Rep. Bryan Steil (R-WI) highlighted the bipartisan support and “massive energy” surrounding the issue, citing the 294-134 vote on that legislation. However, it remains uncertain whether the Senate will adopt the House bill or draft its own version.
The proposed legislation seeks to define the regulatory treatment of digital assets, distinguishing between cryptocurrencies deemed commodities under the purview of the Commodity Futures Trading Commission (CFTC) and those classified as securities, overseen by the Securities and Exchange Commission (SEC). Generally, tokens associated with well-established blockchains, such as Bitcoin, would be considered commodities.
The third bill, passed by a 219-210 margin, restricts the U.S. from issuing a “central bank digital currency” (CBDC), akin to a government-backed form of digital cash.
The crypto industry has voiced longstanding concerns about regulatory ambiguity hindering its operations in the United States. They argue that the Biden administration favored enforcement actions over transparent rulemaking. The passage of this legislation has been a key objective for the industry, which has emerged as a significant force in Washington through substantial campaign contributions and lobbying efforts.
Proponents assert that the bills represent a pivotal moment in cryptocurrency’s journey toward widespread acceptance.
Patrick McHenry, former chair of the House Financial Services Committee and now vice chair of crypto firm Ondo Finance, believes the legislation will have a “massive generational impact,” comparable to the securities laws enacted in the 1930s that solidified Wall Street’s position as a global financial center. He stated, “These bills will make the United States the center of the world for digital assets.”
Despite significant bipartisan support, the bill has drawn criticism from Democrats who believe the legislation should address President Trump’s potential financial interests in the crypto space.
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Rep. Maxine Waters (D-CA), the ranking Democrat on the Financial Services panel, accused Republicans of seeking to “validate, legitimize, and endorse the Trump family’s corruption and efforts to sell the White House to the highest bidder.”
While the stablecoin bill includes a provision barring members of Congress and their families from profiting from stablecoins, this restriction does not extend to the President and his family, even as President Trump develops a crypto-related business during his term.
In May, the President hosted a private dinner at his Virginia golf club with prominent investors in a Trump-branded meme coin. Furthermore, his family holds a substantial interest in World Liberty Financial, a crypto venture that launched its own stablecoin, USD1.
President Trump reported earnings of $57.35 million from token sales at World Liberty Financial in 2024, according to a publicly available financial disclosure released in June. A meme coin associated with him has generated an estimated $320 million in fees, although these earnings are distributed among various investors.
Some Democrats have also expressed concerns that the bill establishes a regulatory framework that could potentially pose long-term financial risks. They have also warned that the legislation could enable major corporations to issue their own private cryptocurrencies.
Sen. Elizabeth Warren (D-MA), the ranking Democrat on the Senate Banking Committee, cautioned, “If this bill passes, it will allow Elon Musk and Mark Zuckerberg to issue their own money. The bill still permits Big Tech companies and other conglomerates to issue their own private currencies.”