Senate Gridlock Stalls Stablecoin Legislation, Compromise Urged

Congress faces partisan division on stablecoin and crypto market structure legislation.

  • Democrats seek stronger anti-money laundering rules, while Republicans push for faster industry growth.
  • Policymakers have not included measures to directly benefit local economies or underserved consumers.
  • Credit unions, community development financial institutions (CDFIs), and minority depository institutions (MDIs) could play a key role in expanding access and education for crypto users.
  • Upcoming House and Senate committee sessions may introduce new opportunities for bipartisan progress.

On April 9, 2025, lawmakers and banking leaders gathered at the Walter E. Washington Convention Center in Washington, D.C., for the American Bankers Association Summit. The event followed recent U.S. tariff changes on nearly 90 countries and occurred amid ongoing debates over stablecoin and crypto market legislation in Congress.

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The latest attempts at passing the Senate Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act failed, and a planned joint House committee hearing on market structure was delayed. The legislative standoff has revealed deep partisan divisions, with Democrats focused on increasing consumer safeguards and anti-money laundering rules. Republicans, meanwhile, are urging a faster path for new legislation to help boost U.S. competitiveness in the digital assets sector.

Jim Nussle, President and CEO of America’s Credit Unions, stated in a letter of support that credit unions should be allowed to offer digital asset services, including stablecoins. “Credit union members trust their credit unions to provide necessary financial services, and the ability to provide new financial services products is needed for credit unions to fulfill their mission,” Nussle wrote.

Some policymakers have suggested that including credit union subsidiaries and service organizations as stablecoin issuers—already considered in current House legislation—could benefit underserved communities. Community development financial institutions (CDFIs) and minority depository institutions (MDIs) are also positioned to support consumers through financial education, risk mitigation, and increased access to capital for crypto startups.

Discussions on the GENIUS Act could resume soon, according to U.S. Senator Ruben Gallego (AZ), who serves as Ranking Member on the Senate Banking Digital Assets Subcommittee. In a media interview, Gallego stated, “I don’t think it’s a ways off, but I don’t think it’s immediate either.”

The House Financial Services Committee is scheduled to hold full committee markups next week. The committee may review a draft crypto market structure bill and amendments addressing the roles of smaller financial institutions.

Consumers, households, and founders remain affected by the lack of stablecoin and crypto market regulations. Lawmakers continue to seek solutions that could support economic opportunity and provide clearer rules for the digital asset industry.

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