CEO of Coinbase Urges Congress to Approve Stablecoin Legislation Prior to August
Rewritten Article:
Brian Armstrong, CEO of Coinbase, urges Congress to expedite the passage of bills concerning stablecoins and market structure, citing the momentum from the FIT21 discussion as a catalyst. Armstrong expressed this view in a recent post, emphasizing the necessity for immediate action from both chambers to pass the proposed legislation before August.
The Financial Innovation and Technology for the 21st Century Act, or FIT21, is a bill aiming to bring clarity to the regulatory landscape for digital assets, particularly cryptocurrencies. It clarifies the jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over crypto.
Rejected under the Biden administration in May 2024, FIT21 has recently been revived due to the release of a discussion draft for a market structure bill, serving as a successor to FIT21, aiming to establish boundaries for the crypto sector.
In his post, Armstrong also commended the efforts of House lawmakers to build on FIT21's momentum. He stated, "We need both chambers to act now if we hope to pass comprehensive legislation into law before August."
At present, the Senate is considering the GENIUS Act, a bill designed to provide legal clarity to the stablecoin market, valued at over $240 billion in market value. Significant players such as Tether and USD Coin are driving the charge in this sector. The GENIUS Act requires at least 60 votes to progress to the next stage of legislation.
Despite initial bipartisan support, the bill has recently faced opposition from nine Senate Democrats due to concerns about perceived insufficient anti-money laundering and national security measures.
Notably, major industry figures like Dennis Porter, co-founder of Satoshi Act Fund, and Senator Tim Scott, chairman of the US Senate Committee on Banking, Housing, and Urban Affairs, have predicted that crypto market regulations will be formalized by at least August 2025.
Aside from the GENIUS Act, the White House is working on two stablecoin bills: the STABLE Act and the GENIUS Act. Although the STABLE Act advanced through a House Financial Services Committee markup hearing on April 3, 2025, it still needs to pass through the House of Representatives and then the Senate before becoming law.
According to a report by Nansen, Coinbase is likely to benefit significantly from stablecoin regulations due to its focus on compliance and lack of strong ecosystem attachments.
Coinbase is expected to reap benefits under the STABLE Act, according to the Nansen report.
Enrichment Data Integration:
The current legislative status of the stablecoin sector in the U.S. Congress primarily centers on the GENIUS Act. This bill, which has advanced but faces challenges, is under review, while the STABLE Act appears less prominent in recent discussions:
GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act)
- Latest Development: The Senate Banking Committee passed the bill with bipartisan support in March 2025.[1][3][5]
- Key Provisions:
- Defines payment stablecoins as digital assets pegged to a fixed value.[2][5]
- Establishes federal licensing, reserve requirements, and tailored regulations for issuers.[2][5]
- Permits state regulation for issuers under $10B in issuance, with federal oversight above that threshold.[5]
- Prohibits issuers from bundling stablecoins with other services or misrepresenting insured status.[4][5]
STABLE Act
Although the STABLE Act (proposed in prior sessions) intended stricter regulations, it currently lacks prominence in the 2025 legislative discussions. No recent search results point to active progress on this bill, suggesting it is not a significant focus at present.
Impact of GENIUS Act Stalemate
- Market Uncertainty: Without federal rules, stablecoin issuers face fragmented state oversight and compliance risks.[1][3]
- Innovation Delays: Blockchain-based payment system integration with traditional finance may be delayed.[1]
- Global Competition: The U.S. risks losing leadership in the stablecoin market to jurisdictions with clearer frameworks.[3][5]
Next Steps: Senate Majority Leader John Thune (R-SD) aims to expedite a floor vote, but Democratic opposition remains a crucial hurdle.[1][2] The passage of the bill would mark the first federal stablecoin framework in U.S. history.
- The Genius Act, currently under consideration in the Senate, seeks to provide clarity in the regulatory landscape for digital assets, with a particular focus on stablecoins.
- The Genius Act, if passed, would define payment stablecoins as digital assets pegged to a fixed value and establish federal licensing, reserve requirements, and tailored regulations for issuers.
- The Genius Act also permits state regulation for issuers under $10 billion in issuance, with federal oversight above that threshold.
- In the Senate, the Genius Act has already passed with bipartisan support, but it faces opposition from nine Senate Democrats due to concerns about perceived insufficient anti-money laundering and national security measures.
- In terms of compliance, Coinbase is expected to benefit significantly from the regulations outlined in the Genius Act due to its focus on compliance and lack of strong ecosystem attachments.
- Meanwhile, the STABLE Act, though intended for stricter regulations, seems less prominent in the 2025 legislative discussions, with no recent search results pointing to active progress on this bill.
- Without federal rules, stablecoin issuers face fragmented state oversight and compliance risks, potentially leading to market uncertainty.
- Without the passage of a bill like the Genius Act, blockchain-based payment system integration with traditional finance may be delayed, potentially impacting business and finance sectors.
- The competition in the stablecoin market could shift towards jurisdictions with clearer frameworks if the U.S. Congress fails to pass legislation clarifying the regulatory landscape for digital assets.
