Stablecoin Legislation Nears Completion Amid U.S. Dollar Dominance Concerns

According to Cointelegraph, Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, announced that comprehensive stablecoin legislation is expected to be finalized soon. This move underscores the U.S. government's urgency to maintain the dominance of the U.S. dollar in onchain activities. Speaking at the Digital Asset Summit in New York on March 18, Hines emphasized that stablecoin legislation is "imminent" following the Senate Banking Committee's approval of the GENIUS Act last week. The GENIUS Act, which stands for Guiding and Establishing National Innovation for US Stablecoins, sets forth collateralization guidelines for stablecoin issuers and mandates full compliance with Anti-Money Laundering laws. Hines highlighted the bipartisan support for the act, noting the rare collaboration across party lines to advance U.S. interests in the digital asset space. He expressed optimism about the potential for stablecoin legislation to reach U.S. President Donald Trump's desk within the next two months, suggesting that the market may be underestimating the bill's potential impact on the U.S. economy, particularly in terms of dollar dominance and financial market transformation. The U.S. dollar currently accounts for the majority of the $230 billion worth of stablecoins in circulation, indicating its continued preference for funding cryptocurrency accounts and facilitating international remittances. While some industry experts predict a shift towards multicurrency stablecoins in the future, the digital dollar remains the predominant choice. U.S. Treasury Secretary Scott Bessent stated that the Trump administration is committed to using stablecoins to uphold the dollar's status as the global reserve currency. This commitment partly explains the urgency to finalize stablecoin legislation. Bessent reiterated the administration's focus on maintaining the U.S. dollar's dominance, as directed by President Trump, during the White House Crypto Summit on March 7.