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ARTICLE · 11 MARCH 2025

Stablecoin Frameworks In Queue: The US Approach To Regulating Stablecoin Issuers

TLP Advisors
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Regulation of digital assets in the United States ("US") has always been piecemeal, with regulation through enforcement efforts by federal agencies extending existing financial laws to digital assets in an ad hoc manner.

GlobalFinance and Banking
Pankhuri Malhotra
Pankhuri Malhotra
Hena Ayisha
Hena Ayisha
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Key Takeaways

  • The US has historically regulated stablecoins through fragmented enforcement efforts but is now moving towards dedicated legislation with two new bills: the GENIUS Act and the Waters Bill.
  • The GENIUS Act promotes a market-driven approach, allowing smaller issuers to operate under state supervision while subjecting larger issuers to federal oversight, with strict one-to-one reserve requirements and a requirement of monthly reserve certifications.
  • The Waters Bill takes a more restrictive stance, placing all stablecoin issuers under Federal Reserve oversight, banning Big Tech-issued stablecoins, and outright prohibiting algorithmic stablecoins.
  • Prior legislative proposals, including the Lummis-Gillibrand Payment Stablecoin Act and the Clarity for Payment Stablecoins Act, have influenced these new bills.

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