WASHINGTON – The House of Representatives has approved three legislative proposals aimed at establishing a more structured and reliable cryptocurrency market through new regulatory measures, aligning with President Trump’s stated goal of positioning the United States as a leading global hub for digital currency.
One of the approved bills, which focuses on regulating stablecoins (a type of cryptocurrency), previously secured bipartisan approval in the Senate and is now headed to the President for his signature. The remaining two measures—one designed to create a comprehensive market framework for cryptocurrencies and another seeking to prevent the Federal Reserve from introducing its own digital currency—will now be considered by the Senate.
The stablecoin bill, which passed with a vote of 308-122, establishes initial regulatory guidelines and consumer protections for stablecoins. These digital currencies are designed to maintain a stable value, often pegged to assets like the U.S. dollar, to mitigate price fluctuations. The Senate had previously endorsed the bill with bipartisan backing in June.
“Payment systems are evolving rapidly on a global scale,” stated Representative French Hill of Arkansas, Chairman of the House Financial Services Committee, during the legislative debate on the stablecoin proposal. Hill emphasized that the bill would “secure American competitiveness while implementing crucial safeguards for consumers.”
Following President Trump’s proclamation of “crypto week,” progress on these bills experienced delays exceeding a day due to disagreements among House Republicans concerning legislative consolidation. Ultimately, Republican leaders decided to hold separate votes on each of the three bills, leaving the future of the other two proposals uncertain in the Senate. These internal differences could signal potential hurdles for the broader cryptocurrency legislation advocated by President Trump and supported by substantial industry investments.
Legislators and industry experts view the stablecoin measure as a significant stride toward enhancing the credibility and trustworthiness of the rapidly expanding cryptocurrency sector. Treasury Secretary Scott Bessent remarked in June that the legislation has the potential to help the currency “develop into a $3.7 trillion market by the end of the decade.”
The bill defines specific requirements for stablecoin issuers, including adherence to U.S. anti-money laundering laws and sanctions regulations. It also mandates that issuers maintain adequate reserves to back the cryptocurrency. Without such a structure, Republicans on the Senate Banking Committee cautioned, “consumers face risks like unstable reserves or unclear operations from stablecoin issuers.”
Following the House votes, Republican representatives strongly urged the Senate to take up the second bill, designed to establish a new market structure for cryptocurrency.
Representative Bryan Steil (R-Wis.) noted that the 294-134 vote in favor of the legislation demonstrates significant bipartisan support and a “massive energy” surrounding the issue. However, it remains uncertain whether the Senate will consider the House version of the bill or opt to draft its own.
This legislation seeks to clarify the regulatory treatment of digital assets, outlining which cryptocurrencies should be considered commodities under the jurisdiction of the Commodity Futures Trading Commission and which qualify as securities overseen by the Securities and Exchange Commission. Generally, tokens associated with more established blockchains, such as Bitcoin, will be classified as commodities.
The third bill, which passed with a narrower margin of 219-210, aims to prohibit the United States from introducing a “central bank digital currency,” similar to a government-backed form of digital cash.
The cryptocurrency industry has long voiced concerns that ambiguous regulations hinder its ability to operate effectively in the U.S., arguing that the Biden administration has favored enforcement actions over transparent rulemaking. The passage of these bills has been a top priority for the industry, which has emerged as a prominent force in Washington through extensive campaign contributions and lobbying efforts.
Advocates assert that the approval of these bills signifies a crucial milestone in cryptocurrency’s progress toward widespread adoption.
Patrick McHenry, former chair of the House Financial Services Committee and current vice chair of crypto firm Ondo Finance, described the legislation as having a “massive generational impact,” comparable to the securities laws enacted by Congress in the 1930s that played a role in solidifying Wall Street’s position as a global financial hub. He stated, “These bills will make the United States the center of the world for digital assets.”
While the bill has garnered substantial bipartisan support, it has also drawn criticism from Democrats who believe the legislation should address President Trump’s personal financial interests within the cryptocurrency space.
“It should come as no surprise that these Republicans’ next objective is to validate, legitimize, and endorse the Trump family’s corruption and endeavors to sell the White House to the highest bidder,” said Representative Maxine Waters of California, the leading Democrat on the Financial Services panel.
A provision in the stablecoin bill prevents members of Congress and their families from profiting from stablecoins. However, this restriction does not extend to the president and his family, even as Trump constructs a crypto empire from the White House.
In May, the Republican president hosted a private dinner at his golf club in Virginia with top investors in a Trump-branded meme coin. His family holds a significant stake in World Liberty Financial, a crypto project that launched its own stablecoin, USD1.
Trump reported earning $57.35 million from token sales at World Liberty Financial in 2024, according to a public financial disclosure released in June. A meme coin linked to him has generated an estimated $320 million in fees, though the earnings are split among multiple investors.
Some Democrats also criticized the bill for creating what they see as an overly weak regulatory framework that could pose long-term financial risks. They’ve also raised concerns that the legislation opens the door for major corporations to issue their own private cryptocurrencies.
“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,” said Massachusetts Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee.