U.S. stablecoin regulatory reform

Key Points:

• U.S. banking entities and consumer advocates push for changes to GENIUS Act.
• Call to limit competitive advantage for state-chartered banks.
• Lobby for overhaul of cryptocurrency market legislation.

On August 15, 2025, the American Bankers Association and 52 other organizations urged the Senate Banking Committee to amend the GENIUS Act stablecoin bill in Washington D.C.

The amendment request reflects significant concern over competitive equity and market structure in U.S. stablecoin regulation, potentially affecting banking operations and cryptocurrency market dynamics.

Banking Associations Call for GENIUS Act Revisions

The American Bankers Association, joined by Americans for Financial Reform and 52 other organizations, submitted a letter to the Senate Banking Committee requesting modifications to the GENIUS Act. Specific asks include the removal of provisions that could grant state-chartered uninsured depository institutions undue advantages.

Pressure from these groups seeks the elimination of clauses allowing stablecoin affiliates to offer returns, a strategic shift in stablecoin management. They urge the formation of broader cryptocurrency legislation that extends beyond the stablecoin sector, pushing for comprehensive market reform.

Market reactions to the announcements remain subdued, as major players have yet to issue direct responses. Notably, President Trump highlighted the GENIUS Act’s intent to establish the U.S. as a leader in the crypto domain. Despite these developments, official statements from primary sources are limited. “The GENIUS Act aims to make the U.S. the crypto capital of the planet, reaffirming our commitment to digital asset innovation,” President Donald Trump.

Stablecoin Market Faces Potential Regulatory Shake-Up

Did you know? The first federal attempt at stablecoin regulation in the U.S., the GENIUS Act, follows stalled state-level efforts over the past decade, marking a unified federal approach.

As of August 14, 2025, USDC maintains a market cap of $67.67 billion, with stable regulatory stature reflected in its $1.00 price. Despite negligible price changes, trading volumes hit $29.10 billion—a 26.92% increase, according to CoinMarketCap.

USDC(USDC), daily chart, screenshot on CoinMarketCap at 23:59 UTC on August 14, 2025. Source: CoinMarketCap Insights from Coincu’s research highlight the GENIUS Act’s role in restructuring U.S. banking laws around stablecoins. These regulations may accelerate broader crypto financial system integration, necessitating a focus on consumer protection and equitable competitive practices.

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