- Stablecoin laws are moving fast in Congress as digital assets become more accepted by US regulators.
- The Federal Reserve may ease crypto rules to support safe innovation in the banking system.
- USDC and USDt lead the stablecoin market with strong growth and high demand from traders and users.
The U.S. Federal Reserve Chair has confirmed growing momentum toward stablecoin regulation. He noted a shift in the crypto landscape, citing failures and fraud in recent years. Now, regulatory focus is intensifying as digital assets gain broader appeal.
Congress Works on Stablecoin Legal Framework
The House and Senate lawmakers are driving forward distinct stablecoin bills. These proposed legal structures aim to establish consumer protections while promoting transparency for consumers. The bills have received approval from their assigned committees. The provisions of the stablecoin bill are advancing through Congress toward presidential approval.
This renewed focus comes after previous efforts to regulate stablecoins fell short. During that period, regulatory agencies issued limited guidance, and crypto-related activities lacked clear federal oversight.
Fed Eyes Looser Bank Guidance on Digital Assets
Federal Reserve Chair Jerome Powell acknowledged that previous bank regulations were conservative. He now suggests that regulators may ease restrictions. The goal is to allow responsible innovation without risking consumer safety or bank stability.
This shift comes as federal banking agencies reconsider their approach. The Federal Deposit Insurance Corporation recently withdrew old guidance. It will replace it with a framework allowing crypto-related bank activities without prior approval.
The Office of the Comptroller of the Currency also updated its stance. It confirmed that federally chartered banks can engage in digital asset operations.
Stablecoins See Rise in Popularity and Value
Stablecoins have emerged as key tools in the crypto ecosystem. Their dollar-pegged nature provides price stability, which appeals to traders and remittance users alike. The global market value of stablecoins now stands at $227 billion.
USDC and USDT are the two major stablecoins. Together, they account for over 88% of all stablecoin value, according to RWA.xyz.
New Administration Pushes for Rapid Regulation
The Trump administration has adopted a pro-crypto stance. Earlier this year, it formed the President’s Council of Advisers on Digital Assets. The council’s mandate includes accelerating digital asset legislation.
Bo Hines, now executive director of the council, has named stablecoin regulation a top priority. The Senate recently passed the GENIUS Act, a major step toward final legislation.
While digital assets take center stage, Powell also addressed the broader economic climate. He warned of slower growth and rising inflation. He attributed these trends to larger-than-expected tariffs and tighter immigration controls.
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