U.S. Stablecoin Bill Nears Approval: A Deep Dive into the State of the Stablecoin Market

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The crypto world may be buzzing about CZ and BNB Chain’s resurgence, but a far more consequential development is unfolding in Washington: the imminent passage of the United States’ first comprehensive stablecoin legislation.

On March 13, the U.S. Senate Banking Committee passed the Generative, Efficient, Novel, and Upstanding Investments in Stablecoins Act (GENIUS Act) by a decisive 18–6 vote. While the bill still requires at least 60 votes in the full Senate, followed by House approval and presidential signature, momentum is building. With reports suggesting the Trump administration has set August as the deadline for final passage, the regulatory landscape for digital dollars is poised for transformation.

Amid broader market stagnation, stablecoins continue to grow in strength. According to DefiLlama, stablecoin market capitalization surged by $1.91 billion in just seven days—surpassing $229 billion for the first time. Even more telling: stablecoin issuers now account for over 70% of total on-chain protocol revenue in the past 30 days.

As regulation looms, this shift could redefine power dynamics across the sector—especially between dominant players like Tether and compliant rivals like Circle. Let’s explore how the GENIUS Act could reshape the stablecoin ecosystem, examine key U.S.-based issuers, and uncover the infrastructure projects set to benefit.

How the GENIUS Act Could Reshape the Stablecoin Landscape

The GENIUS Act introduces strict compliance requirements for dollar-backed stablecoin issuers, favoring regulated, U.S.-based entities over offshore operators. This regulatory moat gives early-movers like Circle a significant advantage—especially as Tether faces increasing scrutiny.

👉 Discover how regulated stablecoins are gaining momentum under new U.S. legislation.

Currently, Tether (USDT) dominates with over 60% market share. However, its offshore structure—registered outside the U.S., with operations based in places like the British Virgin Islands and recently relocating to El Salvador—puts it at odds with proposed American rules.

In contrast, Circle, co-founder of USDC, has long championed regulatory compliance. Jeremy Allaire, Circle’s CEO, has publicly argued that “any entity issuing dollar-backed stablecoins targeting U.S. users must register and operate under U.S. jurisdiction”—a clear jab at Tether.

Circle’s strategy is paying off: USDC became the first stablecoin approved under Europe’s MiCA regulations in 2024. Meanwhile, Tether was not among the 10 firms—including Circle, Crypto.com, and Société Générale—granted permission to issue euro- or dollar-pegged tokens in the EU.

While Tether maintains deep ties within the U.S. financial system—through partners like Cantor Fitzgerald (whose former CEO served as Commerce Secretary) and a $775 million investment in Trump-aligned platform Rumble—it may soon face pressure to restructure its reserve assets. The GENIUS Act could force divestitures of non-cash equivalents such as Bitcoin, corporate loans, and precious metals.

This raises a pivotal question: Will Tether adapt to U.S. standards, or double down on its decentralized, offshore model? For now, its global reach remains unmatched—but regulatory headwinds are mounting.

Major U.S.-Based Centralized Stablecoins

With clearer regulation on the horizon, major financial institutions are rushing into the stablecoin race. PayPal launched PYUSD with Paxos; BlackRock introduced tokenized Treasury fund BUIDL; Stripe acquired stablecoin infrastructure firm Bridge for $1.1 billion; Visa rolled out a tokenization platform; and Robinhood is building an open stablecoin network.

Let’s look at the leading U.S.-registered stablecoins:

Notably, DefiLlama classifies BUIDL as a stablecoin due to its price stability, though it functions more like an RWA (real-world asset) product. Franklin Templeton’s BENJI follows a similar model.

For context, the broader USD stablecoin market includes:

Key Players Beyond the Giants: FDUSD and TUSD

Two other notable centralized stablecoins deserve attention:

First Digital USD (FDUSD)

FDUSD gained traction after Binance delisted BUSD due to SEC pressure. It now ranks among the top stablecoins on Binance.

TrueUSD (TUSD)

Once a pioneer, TUSD faced controversy when the SEC accused its team of selling unregistered securities. Reports also revealed that over 99% of reserves were held by First Digital—with significant holdings linked to Justin Sun’s team.

The Rise of Stablecoin Infrastructure

Stripe’s $1.1 billion acquisition of Bridge spotlighted a growing sector: stablecoin infrastructure. These platforms provide tools for issuing, managing, and integrating stablecoins—critical as adoption accelerates.

We categorize them into three core segments:

1. Stablecoin-as-a-Service (SaaS)

Platforms enabling businesses to launch branded stablecoins quickly and compliantly.

Paxos
A leader in white-label solutions, Paxos powers PYUSD, USDP, and formerly BUSD. It offers full-stack services: token design, compliance, custody, and multi-chain deployment. Recently, it partnered with Robinhood on the Global Dollar Network, promoting USDG—a regulated stablecoin issued in Singapore.

Stably
U.S.-based Stably supports both institutional and decentralized stablecoin issuance. Notably, it launched #USD—a BRC-20 stablecoin on Bitcoin—backed 1:1 by USD under KYC/AML oversight.

Quantoz Payments
Based in the Netherlands but MiCA-compliant, Quantoz issues E-money tokens like EURD and USDQ. Backed by Tether itself, it aims to launch MiCAR-compliant stablecoins for European markets.

2. Stablecoin Payment Services

API-driven platforms helping businesses accept and process stablecoin payments.

Zero Hash
Provides B2B2C infrastructure for crypto and fiat settlements. Clients include Franklin Templeton (for BENJI) and WhatsApp’s payment partner Felix. Backed by Bain Capital and Point72.

BVNK
UK-based fintech offering global stablecoin payments via a single API. Emphasizes self-custody and banking integration. Raised $50 million in a round led by Haun Ventures.

Coinflow
Focuses on instant settlement using stablecoins. Enables real-time payouts to bank accounts via Visa Direct or SEPA Instant. Popular in Solana’s NFT ecosystem.

Sphere
Targets emerging markets like Latin America and Oceania. Offers no-code tools for merchants to accept USDC and other stablecoins. Funded by Coinbase and Kraken Ventures.

3. Liquidity Management Platforms

As new stablecoins emerge, fragmentation threatens efficiency. Enter liquidity layer solutions.

Perena
Founded by former Solana Foundation lead Anna Yuan, Perena launched Numéraire, a multi-stablecoin swap protocol. Its USD* token represents a pooled basket of USDT, USDC, PYUSD, etc., enhancing capital efficiency and reducing fragmentation.

Raised $3 million in pre-seed funding from Binance Labs and Borderless Capital.

Where Are Stablecoins Issued? The Role of Blockchain Networks

Stablecoins span multiple blockchains, each serving different use cases:

Beyond public chains, specialized networks are emerging:

👉 See how next-gen blockchains are optimizing for regulated stablecoin use.

Frequently Asked Questions (FAQ)

Q: What is the GENIUS Act?
A: The Generative, Efficient, Novel, and Upstanding Investments in Stablecoins Act is a U.S. legislative proposal to regulate dollar-backed stablecoins through licensing, reserve transparency, and consumer protections.

Q: Will Tether be banned in the U.S.?
A: Not necessarily—but if it doesn’t comply with new rules (e.g., registering as a U.S. entity or adjusting reserves), it may lose access to U.S. markets or banking partners.

Q: Is USDC safer than USDT?
A: From a regulatory standpoint, yes. USDC is fully transparent, audited monthly, and issued by a U.S.-regulated company. USDT lacks equivalent oversight despite improvements.

Q: Can any company issue a stablecoin?
A: Under current U.S. proposals, only licensed financial institutions or regulated entities will be allowed to issue dollar-backed stablecoins.

Q: What are RWA-based stablecoins?
A: Stablecoins backed by real-world assets like U.S. Treasuries (e.g., BlackRock’s BUIDL). They blend traditional finance with blockchain efficiency.

Q: Why does stablecoin infrastructure matter?
A: As adoption grows, companies need plug-and-play tools to issue, manage, and integrate stablecoins—just like Stripe did payments for e-commerce.

The era of unregulated stablecoins may soon end. With the GENIUS Act advancing and institutional interest peaking, compliance isn’t just a legal requirement—it’s becoming a competitive edge.

Whether you're watching Circle challenge Tether’s dominance or tracking infrastructure innovators like Paxos and Perena, one trend is clear: the future of money is digital, regulated—and rapidly evolving.

👉 Stay ahead of the next wave in digital finance—explore regulated crypto innovations today.