Two major cryptocurrency-related bills are currently under review in the U.S. Congress. On May 7, Treasury Secretary Scott Bessent expressed support during a congressional hearing for the Stablecoin and Market Structure Bills, saying these would help the U.S. maintain leadership over China in the digital asset space. However, the Democratic Party staged a walkout, furious over a recent private dinner between former President Trump and holders of the meme coin TRUMP, igniting a fierce partisan battle over the future of crypto regulation.
Key Timeline and Events
May 6 – Republicans Introduce Two Draft Bills
- Digital Asset Market Structure Bill: Proposed by House Republicans, it sets regulatory responsibilities for crypto trading platforms, issuers, and custodians.
- GENIUS Stablecoin Bill: Establishes a regulatory framework for stablecoin issuance, reserves, and issuer accountability; scheduled for a Senate vote on May 8.
May 7 – Treasury Secretary Bessent Voices Support
At a House hearing, Bessent stated the U.S. must become the global destination for digital assets to maintain its technological edge over China.
“Sound market structure and stablecoin legislation will help achieve this,”
he added, echoing Trump’s 2024 campaign goal of “making America the crypto capital of the world.”
Why These Bills Matter to the Crypto Industry
- Stablecoin Legalization and Oversight
- The GENIUS Bill aims to legalize and regulate the U.S. stablecoin market—affecting major issuers like Circle (USDC) and Tether (USDT).
- Defining Regulatory Scope for Exchanges
- The Market Structure Bill clearly distinguishes crypto assets as either securities or commodities, significantly impacting the compliance strategies of exchanges such as Coinbase and Binance.
- Policy Direction Aligning with Trump
- Bessent’s alignment with Trump suggests that the U.S. may soon pass a "Trump-style crypto regulatory framework", which markets see as potentially more industry-friendly.
Democratic Backlash: Conflict of Interest and Political Motives
Despite Treasury backing, Democrats mounted a fierce response. On May 6, one day before the hearing, Democratic lawmakers walked out of the House Financial Services Committee, denouncing Trump's involvement in a private dinner with TRUMP meme coin holders and alleging conflicts of interest behind the bills.
- Rep. Maxine Waters, the top Democrat on the committee, led the boycott, calling for an immediate investigation into Trump’s crypto ties.
- Nine Democratic Senators jointly released a statement opposing the GENIUS Bill in its current form, demanding stronger anti-money laundering (AML) measures, restrictions on foreign issuers, and enhanced national security provisions.
Although Republicans currently control both chambers of Congress, the fate of the two bills remains uncertain, with political tensions threatening to derail their passage.
