Stablecoin Legislation Needs Market Structure, Says Financial Services Committee Chair

According to ChainCatcher, French Hill, Chair of the House Financial Services Committee, emphasized the necessity of a comprehensive market structure alongside the proposed Genius Act, which focuses on dollar-backed stablecoins. Hill likened passing the stablecoin bill without a market structure act, such as the Clarity Act, to having a mobile phone without network and signal towers. Hill highlighted the industry's need for clear 'signal towers'—established rules for banks, brokers, DeFi protocol developers, and traders—to function effectively. He pointed out that stablecoins require both issuance regulations and distribution channels, and that a lack of market structure could lead to fragmented liquidity and hinder widespread adoption.