On May 6, Coinbase chief executive Brian Armstrong urged Congress to move stablecoin and broader crypto market rules across the finish line before lawmakers leave for the August recess.
Armstrong asked the Senate to advance Senator Bill Hagerty’s Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act while encouraging the House to sharpen and pass a revised version of the Financial Innovation and Technology for the 21st Century Act (FIT21).
The GENIUS Act proposes reserve, audit, and licensing standards. The revised House draft of FIT21 also clarifies the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) jurisdiction over digital assets, setting clear rules for cryptocurrencies.
The twin measures would deliver the first federal framework for the $240 billion stablecoin sector, which remains dominated by Tether’s USDT and Circle’s USD Coin.
Each bill still faces hurdles. With the GENIUS bill requiring 60 Senate votes, nine Democrats have shown opposition over perceived gaps in anti‑money‑laundering and national security safeguards. Armstrong, however, framed this moment as a narrow window, echoing earlier predictions from lawmakers and industry advocates who see 2025 as the outer deadline for clear rules.
Although lawmakers rejected the proposal in May 2024, it was recently revived with a market-structure discussion draft.
They wonder if offering exclusive White House access to top TRUMP token holders violates bribery laws or the emoluments clauses. The senators also expressed concerns that foreign actors could use the memecoin to gain influence without public disclosure.
In an open letter to the Office of Government Ethics, a group of Senators pressed for clarity on President Trump’s crypto venture.
These developments follow news that Abu Dhabi’s state-backed MGX will use USD1 to fund a $2 billion investment in Binance. World Liberty Financial, the Trump family-linked venture, issues this stablecoin.
World Liberty Financial co-founder Zach Witkoff announced the deal alongside Eric Trump at a Dubai crypto conference, calling USD1 “the official token” for closing the transaction.
The White House has not explained how the president’s crypto holdings remain separate from policy decisions, and this continues to fuel concerns.
Tether’s USDT commands a 75% share of the crypto market with a market cap of $149 billion and a $1 billion operating profit in Q1 2025. Meanwhile, the Trump-linked USD1 commands a market cap of $2.1 billion.
Backed one-to-one by US Treasuries and cash equivalents, USD1 is intended to offer transparency and regulatory compliance.
For example, Stripe has begun testing a U.S.‑dollar stablecoin payout tool. They’ve invited exporters and SaaS firms outside the US, UK, and EU to participate in the pilot.
While USD1 attempts to carve out its niche in the political sphere, the broader stablecoin ecosystem continues to evolve rapidly across financial markets. Several major financial players have made major moves recently.
Subject to central bank sign‑off, the token seeks to give Gulf corporations a regulated on‑chain cash option, closing the FX loop for oil trade and cross‑border e‑commerce across MENA.
In a parallel development, First Abu Dhabi Bank (FAB) teamed with sovereign investors ADQ and IHC to unveil a dirham‑backed stablecoin on the ADI blockchain.
CEO Patrick Collison says its product, built on Bridge rails, will let platforms settle instantly in tokenized dollars. Stripe still handles compliance and conversion behind the scenes.