US Stablecoin Bill is in Process, But No Action Expected Until the Fall

Draft text for a bipartisan stablecoin bill could reportedly be delayed until after Congress’ August recess

article-image

Blockworks Exclusive Art by Axel Rangel

share

key takeaways

  • A committee vote was planned for Wednesday, but the draft bill is said to still have some core issues
  • A month’s delay won’t have too much of an impact on investors, a crypto research head said

A long-awaited digital asset bill that would detail stablecoin regulation in the US has reportedly been delayed until at least September, but lawmakers might issue a draft of the bill as soon as this week.

The Block reported on Monday that members of the US House of Representatives are working on a discussion draft while the bill has been pushed back due to debate.

The move highlights that Washington is struggling to establish solid digital asset legislation after the recent collapse of several crypto lenders, which exposed investors to risks such as withdrawal freezes as unsecured creditors.

Lawmakers that were working on a potential deal between House Financial Services Committee Chairwoman Maxine Waters and Republican Rep. McHenry weren’t able to complete the draft text of the bill ahead of a planned committee vote penciled in for Wednesday, the Wall Street Journal reported. 

Members of their staff had been working through the weekend to sort out policy issues within the legislation, but some core issues, including standards around custodial wallets, still remain.

This likely extends consideration of the package until at least September, when Congress is back from the late-summer break, according to The Journal. The House’s upcoming recess lasts from August 8 until Labor Day on September 5.

The collapse of crypto lenders like Celsius has brought attention to the pitfalls of decentralization, anonymity, and the lack of regulation and compliance, said Martin Hiesboeck, head of blockchain and crypto research at Uphold.

“While the US players in the field might struggle to adapt and get the necessary certifications and approvals, a delay of a month won’t have too much effect on investors,” he told Blockworks. 

“Stablecoin regulation touches on fiat rules and crypto rules alike thus involving multiple government agencies, therefore I’m surprised it’s not delayed until next year,” he added.

While the draft text remains largely unknown, details of the proposed framework have led watchdog groups and banking lobbyists to call for more investor protections. On Friday, the Independent Community Bankers of America encouraged Waters and McHenry to delay the July 27 markup meeting, saying they should dig deeper into the consequences posed by the regulation of stablecoins.

Politico separately reported that Treasury Secretary Janet Yellen flagged a requirement to change a key provision in the legislation. In a call with Waters on Friday, Yellen expressed concerns about how the bill addressed digital assets held in custody on behalf of customers. One source told the outlet that the Treasury wants digital asset providers to hold customer assets separately in order to ensure preservation during events such as insolvency.   

If lawmakers take more time to reconsider the approach to the proposed stablecoin regulation, the delay might have positive consequences, Alexander Tkachenko, founder and CEO of VNX said.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 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.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

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

Research Report Templates (2).png

Research

This reports analyzes the competitive dynamics of the Solana DEX landscape, identifying sustainable moats per protocol. We also find that Raydium (RAY), Orca (ORCA), and Lifinity (LFNTY) are valued very similarly on a P/S basis and what this could mean for Meteroa's (MET) valuation, which is still pre-TGE.

article-image

The Drop’s Kate Irwin explains why OpenSea’s OS2 and SEA token are “exciting”

article-image

CoinShares’ CEO noted a “significant perception gap between regulatory approval, client demand and advisers’ fiduciary concerns”

article-image

“If we were to be successful, we would be on par with the Teslas and the DeepMinds of the world,” Frodobots’ co-founder said

article-image

It appears Trump’s team is trying to avoid having too many cooks in the kitchen

article-image

A lot has changed in the six months since the Fed decided to cut rates

article-image

Vitalik Buterin catches flack with pro-communism joke