As the digital asset industry matures, Congress is racing to create a legal framework for the issuance and oversight of payment stablecoins. In 2025, two bipartisan bills—one in the Senate, one in the House—emerged as the most comprehensive efforts to regulate the stablecoin ecosystem:
- The GENIUS Act: Introduced by Senator Bill Hagerty (R-TN)
- The STABLE Act: Introduced by Representatives Bryan Steil (R-WI) and French Hill (R-AR)
While both bills seek to provide clarity, investor confidence, and regulatory guardrails for stablecoin issuers, there are important distinctions in scope, structure, and oversight.
This post compares both bills side-by-side so fintech companies, Web3 developers, investors, and banks can understand what’s coming and how to prepare.
At a Glance: Key Similarities
- Applies to payment stablecoins: Both bills define and regulate stablecoins pegged to the U.S. dollar, intended for payments and settlement.
- Establishes licensing pathways: Permits issuance by IDI subsidiaries, federally qualified nonbank issuers, and state-chartered issuers.
- Mandates 100% reserve backing: Requires all payment stablecoins to be fully backed by high-quality liquid assets (cash, bank deposits, or short-term Treasuries).
- Includes consumer protections: Prioritizes user claims in insolvency events.
- Preempts patchwork state-by-state approaches: Creates a uniform national framework for issuer registration.
GENIUS Act vs. STABLE Act: Comparison Chart
| Feature | GENIUS Act (Senate) | STABLE Act (House) |
|---|---|---|
| Lead Sponsor | Sen. Bill Hagerty (R-TN) | Rep. Bryan Steil (R-WI), Rep. French Hill (R-AR) |
| Date Introduced | February 2025 | March 2025 |
| Primary Objective | Provide a clear compliance pathway for stablecoin issuers | Establish a national regulatory framework with greater consumer protections |
| Stablecoin Definition | Pegged to U.S. dollar, used for payments and settlement | Same |
| Who Can Issue | Subsidiaries of IDIs, federally qualified nonbank issuers, state-qualified issuers | Same |
| Reserve Requirements | 1:1 backing using U.S. currency, insured deposits, or Treasuries (≤ 93-day maturity) | Same |
| Regulatory Oversight Model | Emphasizes coordination between state and federal regulators | Centralized federal oversight with less state-level discretion |
| Consumer Protection Language | Requires prioritized treatment of holders in insolvency; general consumer protections | Detailed consumer protections and explicit prioritization in bankruptcy |
| Foreign Stablecoin Considerations | Silent on foreign stablecoins | Targets foreign-issued coins for added scrutiny and possible restrictions |
| Penalties and Enforcement | Broad federal enforcement aligned with IEEPA and AML frameworks | Clearly defined enforcement mechanisms and civil penalties for unauthorized issuance |
| Preemption of State Laws | Supports dual pathway to avoid patchwork regulation | Seeks strong federal preemption over conflicting state requirements |
| Treatment of Wallets/Platforms | Not explicitly addressed | Mentions potential downstream obligations for platforms handling stablecoins |
| Bill Status (as of 2025) | Introduced and referred to Senate Banking Committee | Approved by House Financial Services Committee |
Which Bill Goes Further?
Summary: Both bills promote regulatory clarity and U.S. dollar-backed innovation, but they take different approaches to oversight. The GENIUS Act offers more state-federal flexibility and appeals to fintechs seeking faster market access. The STABLE Act leans into federal authority, introducing more explicit consumer protection language and enforcement mechanisms.
Ultimately, the final legislation will likely blend features from both bills, depending on reconciliation between the House and Senate.
Final Thoughts
The GENIUS Act and STABLE Act represent the most comprehensive and bipartisan effort yet to bring stablecoin regulation under federal oversight. Their similarities provide a strong policy baseline, while their differences reflect ongoing debates about who should control digital currency innovation in the U.S.
At Veritas Global, we help financial innovators, fintech startups, and stablecoin issuers navigate complex regulatory frameworks with confidence. Whether you’re preparing to issue a stablecoin or evaluating how these bills could affect your operations, our team offers deep legal and strategic guidance.
Need help structuring a compliant stablecoin issuance strategy? Contact us today to stay ahead of U.S. regulation and build for scale.
