How Donald Trump is hindering the advancement of stablecoin legislation
Date: 2025-04-02 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
The US Congress is seeking to develop a regulatory framework for stablecoins and the structure of digital assets. Donald Trump is actively pushing for reforms, demanding that legislators and regulators provide clear and understandable rules for the cryptocurrency market in the US.
However, a complicating factor is the increasing involvement of the Trump family in the crypto industry, including activities in the field of DeFi protocols, memecoins, and bitcoin mining. This conflict of interest slows down the process of adopting legislative initiatives.
Differences in bills
French Hill, the chairman of the House Financial Services Committee, noted that the Trump family’s involvement in the creation of a stablecoin and the launch of the DeFi platform World Liberty Financial complicates the advancement of bills.
“Their activities in the memecoin space and the discussion of creating their own stablecoin do create additional complications,” Hill emphasized at a press conference.
Despite this, the Committee is preparing to vote on the STABLE bill, while the Senate approved its own version, called GENIUS, earlier in March. Congressman Brian Steil, who chairs the House Digital Assets Subcommittee, says the two bills are about 80% the same.
The main difference between the bills is around regulation of foreign issuers. The Senate is pushing for more oversight, while the House is proposing to give companies like Tether two years to adapt to the new rules.
“If a stablecoin is used in the United States and is positioned as dollar-backed, it has to meet our standards,” Hill added.
Regulatory Issues or an Attempt to Set a New Standard?
The Donald Trump-linked platform World Liberty Financial recently announced the launch of its own stablecoin. Interestingly, it was also announced that the Trump family was entering the Bitcoin mining market.
The move has raised concerns among some lawmakers who believe that the White House’s involvement in cryptocurrency projects could influence the legislative process.
Expectations and Next Steps
According to TD Cowen, the House of Representatives is likely to approve the STABLE bill this spring. A vote in the Senate is expected in the coming months, with final approval possible by the end of summer.
The most contentious issue is the regulation of stablecoins, which are issued abroad but used by American users.
Additionally, a hearing on the Market Framework Act is scheduled for April 9. Both bills are being considered together and could determine the future regulatory framework for the cryptocurrency market.
