Coinbase Leader Calls on American Politicians to Approve Legislation for Stablecoins
Rewritten Article:
Brian Armstrong, CEO of Coinbase, is pushing U.S. legislators to pass stablecoin regulations before the August break. In a recent post on X (formerly Twitter), he appealed to the Senate to advance the GENIUS Act and build upon the progress made by the FIT21 bill in the House.
Armstrong implored both the Senate and the House to act swiftly and pass robust laws that safeguard consumers and foster innovation in the digital asset sector.
The GENIUS Act, proposed by Senator Bill Hagerty, aims to establish a secure and business-friendly legal framework for U.S.-based stablecoins. Both parties have voiced their support for the bill, viewing it as a crucial step towards creating foundational federal guidance for stablecoins.
Armstrong's endorsement underscores the industry's desire for legal clarity, which, in turn, could stimulate innovation and foster competition in the digital asset space. As the legislative debate unfolds in Congress, the focus remains on innovations' opportunities and the need to protect consumers to maintain the U.S.'s competitive edge in the global digital economy.
The outcome of these legislative efforts will significantly shape the future of stablecoins and their place within the financial system.
Further Reading: Gemini Lists Ripple's RLUSD Stablecoin for Trading
Enrichment Data:
The GENIUS Act, or the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, is a proposed bill targeting stablecoin regulation in the U.S. As of May 2025, the bill has advanced through the Senate Banking Committee with bipartisan support but now faces opposition from key Democrats.
Key Provisions:- Under the GENIUS Act, stablecoin issuers are required to maintain at least one dollar of authorized reserves for every dollar of stablecoins issued. These reserves can include insured deposits, short-dated Treasury bills, and similar government-issued assets.- If a stablecoin issuer's total issuance surpasses $10 billion, they must transition from state licensing to federal regulatory oversight.- The bill sets a one-year deadline for the necessary federal regulations to be enacted once the Act is enacted.
Current Status:- In spite of initial bipartisan support, the GENIUS Act currently faces obstacles due to opposition from nine Senate Democrats, who demand amendments before supporting the bill.- If the Act fails to pass, it could hinder the progress of other crypto legislation in 2025, leaving stablecoin issuers without uniform regulatory standards.
- Brian Armstrong, the CEO of Coinbase, is urging U.S. legislators to pass the GENIUS Act before the August break, aiming to establish a favorable business environment for stablecoins.
- Ripple's RLUSD stablecoin has been listed for trading on Gemini, highlighting the growing interest in stablecoins within the digital asset business sector.
- The GENIUS Act, also known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, proposes that stablecoin issuers maintain one dollar of authorized reserves for every dollar of stablecoins issued, and those with over $10 billion in issuance must transition to federal regulatory oversight.
- The passage of the GENIUS Act could foster innovation in the digital asset sector, providing regulatory clarity and promoting competition among stablecoin issuers.
- The current status of the GENIUS Act is uncertain, as it faces opposition from key Democrats, and if it fails to pass, it could hinder the progress of other crypto legislation in 2025, leaving stablecoin issuers without uniform regulatory standards.
