The U.S. Senate will vote on the Stablecoin Bill! Trump's support sparks regulatory controversy, Democrats: Don't let Musk succeed

The U.S. Senate Banking Committee is about to vote on the Stable Coin (Stablecoin) Regulation Act, a legislation supported by U.S. President Trump to accelerate the progress of the bill. Stable Coin is seen as a key technology that is expected to disrupt traditional payment systems, but it has also raised concerns among regulatory authorities.

The Senate Banking Committee is about to vote, and the Republican Party is accelerating its push

According to Bloomberg, the Senate Banking Committee is expected to vote on the bill on Thursday, (3/14) Eastern Time. The bill, led by Senator Tim Scott, has been revised after negotiations with various industry parties. Scott emphasizes that this legislation will protect consumers and enhance financial inclusion.

New York Democratic Senator Kirsten Gillibrand said that the revised version has made significant progress in risk management, bankruptcy processing, transparency, etc. However, Democratic leader Elizabeth Warren of the Senate Banking Committee criticized the bill for not effectively protecting consumers, maintaining financial stability, and potentially affecting national security.

The Warren team's analysis pointed out that both the Musk (Elon Musk) and the Trump team may use loopholes in the law to issue their own Stable Coins, blurring the line between banking and commerce, and bringing regulatory risks.

Trump supports the regulation of Stable Coin, emphasizing that it helps maintain the dominance of the US dollar.

The regulation of Stable Coin has recently received attention, closely related to Trump's stance. Because Trump publicly supported the provision of a regulatory framework for Stable Coin at the White House cryptocurrency summit, Treasury Secretary Scott Bessent also emphasized that Stable Coin will help consolidate the position of the US dollar in the global financial market.

Some supporters believe that Stable Coin can provide a faster and cheaper payment method. However, opponents are concerned that without strong regulation, once the issuer goes bankrupt, consumers' funds may be lost, and it may even lead to government bailouts.

The House of Representatives is also pushing for legislation, but there are still controversial regulatory details.

In addition to the Senate proposal, the House Financial Services Committee is also pushing forward its own Stable Coin bill. The committee's chairman, French Hill, recently held a hearing where multiple financial industry executives were invited to attend, emphasizing that the US dollar Stable Coin can reduce transaction costs for American consumers and businesses.

However, Democratic Representative Maxine Waters warned that the Republican proposal in the House fails to establish sufficient security measures, such as prohibiting figures like Musk's tweet (X) or Meta from issuing their own Stable Coin.

Waters further stated that Trump and Musk are undermining efforts to regulate the Stablecoin market. She accused Trump of profiting from his own meme coin TRUMP and establishing a billion-dollar Trump reserve in the crypto market for the benefit of his MAGA supporters. She expressed her hope to reach bipartisan consensus with the Republican Party but also emphasized that she would do everything to prevent Musk from entering the Stablecoin market.

The stablecoin industry is developing rapidly, and regulatory issues are attracting attention

The stablecoin market has grown rapidly in recent years, with billions of dollars in trading volume flowing globally every day. Fintech companies and banks have also joined in, launching their own digital coins or considering issuing new stablecoins.

According to the data from ARK Invest (ARK Invest), the global Stable Coin trading volume is expected to exceed $15 trillion in 2024, indicating strong market demand. Currently, the two largest USD Stable Coin issuers in the world, Tether and Circle, have daily trading volumes reaching billions of dollars.

The industry is also optimistic about future development, such as Paxos, CEO of Stable Coin issuer Charles Cascarilla, who said at a congressional hearing: 'The blockchain version of the dollar can be transferred immediately, almost zero cost, and can be used by anyone with a network and smartphone.'

But the traditional financial sector is concerned about competitive pressures, such as banks worrying that Stable Coin may take away deposits and transaction fees, weaken the bank's lending capacity, and affect economic growth. The American Bankers Association (ABA) further warns that once there is a risk of a run on Stable Coin, it may lead to asset sell-offs, currency pegs, and trigger market panic.

Is it government-regulated or privately issued, the game behind the Stable Coin bill

The core controversy of the current Stable Coin bill in Congress is whether it should be regulated by the government or left to private enterprises for issuance. Here are the positions of both sides:

Government stance supports central bank digital currency

The digital dollar issued by the Federal Reserve is more secure (CBDC).

To prevent tech giants from abusing data and monopolizing the market, but it may also affect the development of private enterprises and stifle innovation.

The private sector supports private Stable Coin

Enhance financial inclusion, allowing more people to use Stable Coin.

Reduce the transaction fees and charges of traditional banks, improper regulation may lead to financial crises.

Currently, pro-cryptocurrency members of Congress hope to ban the Federal Reserve from issuing central bank digital currency (CBDC) (, in order to protect the business model of private Stable Coin issuers, which has also become a key point of negotiation for the bill.

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This article The US Senate will vote on the Stable Coin Act! Trump supports the regulatory controversy, the Democratic Party: Don't let Musk succeed first appeared on Chain News ABMedia.