The crypto industry in the United States is on the brink of a breakthrough as several pro-crypto bills are expected to pass through Congress this week, potentially integrating digital assets deeper into traditional finance.
Dubbed “Crypto Week” by the Republican majority, the U.S. House of Representatives is preparing to vote on multiple crypto-related bills, including the highly anticipated GENIUS Act, which would establish a federal regulatory framework for stablecoins.
GENIUS Act: A Defining Moment for Stablecoin Regulation
The GENIUS Act has attracted bipartisan support in the Senate and is expected to pass the House before landing on President Donald Trump’s desk. Trump has already voiced his approval and signalled his intent to sign it into law.
If enacted, the GENIUS Act would:
- Mandate stablecoins to be backed by liquid assets like U.S. dollars and short-term Treasury bills.
- Require monthly public disclosures of reserve compositions by stablecoin issuers.
Proponents argue that these measures will legitimise stablecoins by making them safer and more transparent, paving the way for their mainstream adoption by banks, retailers, and consumers.
Crypto Industry Sees Legislative Win
For years, the crypto sector has pushed for clear federal legislation. Industry players have invested heavily in pro-crypto candidates during election cycles to help shape favourable policies.
“Historically, when lawmakers advance industry-backed frameworks, institutional sentiment strengthens. We expect capital that was previously sidelined due to regulatory uncertainty to re-enter,” said Jag Kooner, head of derivatives at Bitfinex.
This legislative momentum coincides with Bitcoin hitting record highs, recently surpassing $120,000, as investor optimism grows around regulatory clarity and renewed interest in risk assets.
Why Stablecoin Rules Matter Now
Stablecoins, pegged to traditional currencies like the U.S. dollar, have become essential for:
- Instant payments
- Token swaps
- Cross-border remittances
Their rapid growth in recent years has pushed regulators to step in. According to Julia Demidova, head of digital currencies at FIS, many companies are already strategising how to integrate stablecoins into their financial operations.
“Everyone is realizing, look, this is moving forward and they need to have a stablecoin strategy,” Demidova said.
“They need to think how banks themselves will position against some of these novel, new, emerging fintech-issued stablecoins as well.”
Concerns from Lawmakers
While many support the GENIUS Act, some Democrats have raised concerns:
- It may not prevent big tech companies from issuing their private stablecoins.
- Stronger anti-money laundering (AML) protections are needed.
- There should be limits on foreign stablecoin issuers operating in the U.S. market.
What’s Next?
If the House passes the GENIUS Act as expected and President Trump signs it, the U.S. will have its first comprehensive federal framework for stablecoins. This milestone could unlock new capital, improve institutional confidence, and push crypto further into the mainstream financial system.
