Senate faces August deadline for $10 billion stablecoin rules

Coinbase CEO Brian Armstrong has urged the U.S. Senate to advance the GENIUS Act, a bill that would establish a federal regulatory framework for stablecoins and digital assets, before lawmakers leave for the August recess.

“Congress has a real opportunity this week to advance stablecoin and market structure legislation. We strongly support the Senate starting debate on the GENIUS Act—and we need 60 votes to get there,” Armstrong stated, according to his post on X.

The GENIUS Act, approved by the Senate Banking Committee in March with an 18-6 bipartisan vote, proposes licensing requirements for stablecoin issuers and sets clear criteria for becoming a federally permitted issuer.

Smaller issuers with under $10 billion in market capitalisation would be overseen at the state level, while larger issuers would fall under federal regulators such as the Federal Reserve and the Office of the Comptroller of the Currency.

The bill also mandates monthly liquidity reports, 1:1 reserves backed by U.S. dollars or highly liquid assets, and strict anti-money laundering and know-your-customer requirements.

Armstrong also welcomed progress in the House, where the Financial Innovation and Technology for the 21st Century Act (FIT21) seeks to clarify the roles of the SEC and CFTC in digital asset oversight.

“Both chambers need to act now if we hope to pass comprehensive legislation into law before August,” he emphasised.

Senate Majority Leader John Thune has expedited the voting process, describing the GENIUS Act as “a clear, pro-growth, and secure regulatory framework to modernise our payments system and cement U.S. dollar dominance.”

The legislation is seen as a significant step toward providing regulatory certainty for the digital asset industry and protecting consumers, while critics continue to raise concerns over national security and market risks.