Capitol Hill Eyes Stablecoin Regulation—What’s at Stake for the Digital Dollar?

After years of uncertainty, stablecoin regulation is finally gaining momentum on Capitol Hill. Three competing bills—the GENIUS Act, the STABLE Act, and an unnamed proposal from Rep. Maxine Waters (D-CA)—are vying to define the future of digital dollars in the U.S. This long-overdue push for clear rules could determine whether stablecoins could become a mainstream financial tool or remain stuck in regulatory limbo.

Innokenty Isers, Chief Revenue Officer at Paybis, a UK-based crypto exchange, sits down with the Finance Feeds to discuss the current stablecoin legislation, providing an in-depth perspective on the GENIUS Act and STABLE Act, and their potential implications for the US dollar’s dominance.

1. What are the potential implications of passing the GENIUS Act for stablecoin issuers and the broader crypto market?

​The GENIUS Act introduces a structured regulatory framework for stablecoin issuers. The U.S. is undoubtedly one of the biggest and most important markets for crypto and stablecoins. But, for years, there hasn’t been any regulatory clarity for issuers. What are their reserve requirements or consumer protection obligations? The GENIUS Act finally clarifies these questions.

The bill’s provision mandates 1:1 reserves and regular audits. So, all stablecoins operating in the U.S. must be backed by tangible assets. This will build trust and credibility in the crypto market. The Act’s dual oversight model, balancing federal and state regulation, accommodates both large and small issuers. 

However, there are potential concerns about some gaps in theAct that could allow major tech companies to issue their own stablecoins. It raises concerns about market dominance and privacy. Regardless, the GENIUS Act is a step in the right direction in terms of integrating stablecoins into the mainstream financial system

2. Supporters say it could strengthen the U.S. dollar dominance, what is your key takeaway on this? Why does Bo Hines believe bipartisan support for the GENIUS Act is significant?

As per the proposed legislation, stablecoin issuers operating in the U.S. market must hold reserves backed by U.S. assets, such as Treasury Bonds or liquid assets. Ultimately, the stablecoin would be fully backed by economic instruments tied to the U.S. Dollar. By default, this strengthens USD dominance. The more players enter this regulated market, the more this dominance grows.

Bo Hines sees bipartisan support for the GENIUS Act as a strong signal that both sides recognize the need to balance innovation with safety. This cross-party backing means lawmakers agree that setting clear standards for reserve backing and risk management is essential for building institutional trust. By aligning digital asset practices with traditional financial safeguards, the Act could pave the way for broader adoption and integrate crypto more seamlessly into the global financial system.

3. Why does the government view stablecoin legislation as urgent for maintaining US dollar dominance in on-chain activity?

Stablecoin legislation is urgent because the U.S. government recognizes it’s facing real competition in digital finance. Without clear rules, stablecoin issuers could move offshore, shifting global digital transactions away from the dollar to other currencies. That would directly challenge U.S. financial influence. 

If passed, the GENIUS Act could cement the dollar’s role as the default currency for worldwide blockchain transactions. This isn’t just about regulation—it’s about strategically positioning the U.S. in the digital economy race. Stablecoins are central to future global finance, so proactively setting the rules now keeps the U.S. ahead and protects its economic power.

4. Why are stablecoins considered important for expanding access to US dollars, especially in developing countries?

Stablecoins are actively playing a critical role in advancing financial inclusion at a global scale. Such assets make it easy and affordable for people in developing countries to access U.S. dollars without traditional banking barriers. In many regions, local currencies can be unstable, and traditional financial services are either expensive or unavailable. 

The barriers in the traditional banking system leave millions of people without a viable opportunity to access financial services. As of 2025, nearly 1.4 billion global population still remains unbanked.

Stablecoins solve this by allowing anyone with internet access to hold, send, and receive money securely. For instance, workers abroad can send remittances home instantly, at low cost, without losing money to hefty fees. Merchants gain stability for international trade without worrying about currency fluctuations. It’s a powerful tool for democratizing access to the dollar.

5. How could these two pieces of stablecoin legislation — the GENIUS Act and the STABLE Act  reshape the broader stablecoin market and regulatory landscape?

Both bills aim to bring much-needed regulatory clarity to the stablecoin space but approach it from different policy perspectives.The GENIUS Act focuses on trust and market stability. It mandates issuers maintain full reserves and undergo regular audits. So, it could make stablecoins widely trusted tools, which would, in turn, attract institutions and traditional investors. 

Meanwhile, the STABLE Act prioritizes control and security. It focuses on anti-money laundering measures and ensures stablecoins aren’t misused. If both become law, the result could be a more secure and widely accepted stablecoin market.

However, if regulations become overly restrictive, innovation could slow down, and issuers could move to friendlier jurisdictions. So, striking the right balance between compliance and flexibility will be essential to maintaining competitiveness and driving long-term growth.

6. How does Treasury Secretary Scott Bessent’s stance on stablecoins align with the broader US economic strategy?

Bessent sees stablecoins as a strategic tool to reinforce U.S. dollar dominance in the digital economy. His stance reflects a broader goal of the current U.S. government to position the country as a hub for financial innovation and integrate digital assets as a part of U.S. economic growth.

By establishing clear rules for stablecoin, the U.S. can retain capital, talent, and infrastructure onshore. It also prevents alternative currencies backed by foreign assets from gaining ground in global digital transactions. So, Bessent’s overall view emphasizes that these regulations are a major opportunity to modernize the dollar’s role and extend its influence in global markets.