Stablecoin legislation is subcommittee’s first priority, says Lummis

Subcommittee Chair Cynthia Lummis said a market structure bill will follow

article-image

Senator Cynthia Lummis | Gage Skidmore/"Cynthia Lummis" (CC license)

share


This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.


The Senate Banking Committee’s Digital Asset Subcommittee held its first hearing yesterday and, unsurprisingly, stablecoins took center stage. 

Cynthia Lummis, who chairs the newly minted subcommittee, said that stablecoin legislation is its top priority. A market structure bill, which we started to see movement on last session, will follow. 

“We’re on the precipice of finally creating a bipartisan legislative framework for both stablecoins and market structure,” she said. 

Former CFTC Chair Timothy Massad, a witness during the hearing, advised lawmakers to zero in on stablecoins. Market structure legislation should be punted until fundamental questions are answered. 

“Market structure regulation requires resolving some complex regulatory boundaries, including when is a digital asset a security, a commodity, both or neither?” he said. “There is a risk that we will significantly undermine the securities law framework that has served this country so well and has made our securities markets the envy of the world.” 

The comments come as the industry continues to speculate on what a stablecoin bill might look like. Lummis’ GENIUS Act, introduced alongside Democratic Senator Kirsten Gillibrand, stipulates that “payment stablecoins” must come from registered issuers and have 1:1 backing from fiat currency “or other secure reserves.” 

Generally speaking, the industry and both parties agree on these general terms, but the details are a bit trickier to iron out. Democrat Mark Warner yesterday said he’s seen “a whole bunch of bad stuff” and is advocating for more robust KYC requirements. 

Should the GENIUS bill progress, we are likely to see another hearing with the full Senate Banking Committee. 

But the timeline on if and when this may happen remains unknown.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

The derivatives giant will extend futures and options access to round-the-clock trading in early 2026

by Blockworks /
article-image

Global fiber network goes live as SEC clears 2Z token for utility use

by Blockworks /
article-image

The SPAC transaction positions Avalanche Treasury Co. as a Nasdaq-listed vehicle for institutional AVAX exposure by 2026

by Blockworks /
article-image

The collaboration brings regulated money market fund exposure to Polygon, with custody provided by Standard Chartered

by Blockworks /
article-image

FG Nexus teams with Securitize to bring its Nasdaq-listed equity onchain, offering tokenized stock trading through Ethereum

by Blockworks /
article-image

Sponsored

Taiko launches binding onchain governance and appoints three directors with expertise in global regulation, business strategy and blockchain tech

by Sponsored /