Stablecoin Bills in House and Senate Still Need to Mesh on Several Points: French Hill

The U.S. Senate is nearing a final vote on stablecoin regulation, a significant step in crypto legislation. However, Representative French Hill highlights key differences between the Senate’s bill and the House’s version, requiring reconciliation before becoming law. While largely similar, discrepancies exist, particularly concerning international regulation.

The House bill demands stricter “reciprocity” for foreign stablecoin issuers operating in the U.S., a provision primarily affecting Tether’s USDT. It mandates either U.S. registration or compliance with a substantially similar regulatory regime in a recognized jurisdiction. The Senate’s approach appears less stringent, though the final text remains uncertain.

Another difference lies in regulating stablecoin issuers at the state or federal level. The House bill offers a clearer pathway based on business models, whereas the Senate’s approach is less defined. The two chambers also diverge on non-financial companies issuing stablecoins. The House allows this under OCC regulation, while the Senate’s version proposes a ban for certain public companies, an area requiring clarification.

Representative Hill questions the prevailing notion that stablecoin legislation is easier to pass than broader crypto market oversight. The House successfully passed the latter last session but stalled on stablecoin negotiations. He attributes the Senate’s recent progress on the GENIUS Act to its past inaction on crypto matters. Despite this, he expresses optimism about the House’s contribution.

The House aims to fulfill President Trump’s desire to have both stablecoin and market-structure bills on his desk before the August recess. Both the House and Senate must agree on identical versions for the bill to become law. If the Senate approves its version, the House can either adopt it or pass its own, necessitating a compromise version and further approvals.

The Senate’s stablecoin bill enjoys strong bipartisan support, but faced delays due to concerns about insufficient safeguards against illicit activities and the potential involvement of public officials. Representative Hill acknowledges that President Trump’s involvement in crypto businesses has politicized the debate, distracting from the core issues. The need for compromise and clarification between the House and Senate remains crucial for the bill’s passage.