Coinbase CEO Demands Swift Stablecoin Laws as $240B Threatens to Exit U.S. Jimmy Aki | usagoldmines.com

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).

Will Congress Miss Its 2025 Deadline for Stablecoin Laws?

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.

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.

Although lawmakers rejected the proposal in May 2024, it was recently revived with a market-structure discussion draft.

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.

The White House tracks two separate proposals: the STABLE Act and GENIUS. While the STABLE Act cleared the House Financial Services Committee on a 32‑17 vote last month, the GENIUS proposal, viewed as more industry‑friendly, has progressed further.

Analysts at Nansen noted that a compliance‑focused exchange such as Coinbase would gain from firm rules that could channel institutional demand toward regulated platforms.

Congressional action will determine how the U.S. policies on dollar‑backed tokens balance consumer safeguards against innovation and compete with other financial centers already licensing stablecoin issuers.

Lawmakers now face a choice: break the long stalemate or watch the fast‑growing market evolve elsewhere.

Can Trump-Linked USD1 Challenge Tether’s Stablecoin Dominance?

In an open letter to the Office of Government Ethics, a group of Senators pressed for clarity on President Trump’s crypto venture.

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.

The White House has not explained how the president’s crypto holdings remain separate from policy decisions, and this continues to fuel concerns.

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.

Backed one-to-one by US Treasuries and cash equivalents, USD1 is intended to offer transparency and regulatory compliance.

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.

How Are Stablecoins Disrupting Global Remittances?

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.

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.

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.

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.

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.

The momentum spilled into card networks as Visa and its newly acquired Bridge rolled out stablecoin‑linked cards across six Latin American markets. Similarly, Mastercard joined forces with OKX and Nuvei to let users spend USDC and other tokens at millions of merchants.

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The post Coinbase CEO Demands Swift Stablecoin Laws as $240B Threatens to Exit U.S. appeared first on Cryptonews.

This articles is written by : Nermeen Nabil Khear Abdelmalak

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