It’s important to note that this vote will require support from at least 60 senators to proceed. Should it pass, the bill could quickly move through the chamber in the coming days with backing from both major political parties.
Several key supporters of the legislation include Democratic senators who hold positive views on digital assets, as well as former President Donald Trump.
Stablecoin Regulation and Credit Card Competition
Beyond stablecoins, the bill has become central in debates over credit card processing rules. A separate but related proposal backed by both Republican and Democratic senators would compel large banks to offer merchants more routing options for credit card transactions, potentially reducing reliance on Visa and Mastercard.
The aim of this proposal is to boost competition in the payments sector by mandating access to multiple processing networks. While some lawmakers are pushing to incorporate these provisions into the stablecoin bill, Senate Banking Committee leadership suggests it may address the credit card rules independently in future legislation.
The stablecoin bill itself outlines a framework for issuing and regulating dollar-pegged digital tokens, necessitating that they be backed by short-term, liquid reserves overseen by state or federal authorities. This is intended to clarify how stablecoins can be used for payments and ensure they fall within regulatory guidelines.
However, not all lawmakers are in agreement on the bill’s merits. Progressive senators have criticized it for lacking adequate protections against financial crime and systemic risk. They also express concerns about President Trump potentially benefiting personally from a stablecoin project linked to his business interests.
Democratic senators opposing the bill argue that it leaves significant regulatory loopholes open, particularly regarding potential misuse of stablecoins by illicit actors. One senator shared staff analysis indicating that the legislation might not prevent anonymous transactions by foreign entities and private actors who could exploit the system without oversight.