- Genius founder Trevor Traina backs new US bill to regulate stablecoins with clear rules for issuers.
- The bill gains support from top crypto firms as the industry seeks legitimacy and consumer trust in Washington.
What happened: Genius founder backs bipartisan stablecoin bill to push US crypto regulation
Trevor Traina, founder of the crypto firm Genius, supports a new stablecoin bill from US Representatives Maxine Waters and Patrick McHenry. The bill creates a federal system for how stablecoins should be issued and regulated. It gives the Federal Reserve authority over non-bank issuers and keeps state-level control for others. Traina arranged a dinner in Washington, D.C. to help promote the bill. Attendees included Binance CEO Richard Teng and Coinbase’s Faryar Shirzad. The goal was to get more lawmakers and crypto leaders to support the proposal.
The bill lists basic rules for asset reserves, audits, and consumer protection. It lets both banks and non-banks issue payment stablecoins but under clear limits. Congress is under pressure to act on crypto rules before the next election. Genius is a smaller company, but it wants to take the lead in stablecoin services that follow the law. The firm sees this bill as a chance to grow while staying within regulatory limits.
Also read: Hong Kong passes Stablecoins Bill to regulate digital asset issuers
Also read:JD Vance asserts stablecoins enhance, not threaten, the dollar
Why it’s important
Stablecoins, digital tokens pegged to fiat currencies like the US dollar, are central to the crypto ecosystem. But without consistent regulation, risks have emerged for consumers and markets. Events like the collapse of TerraUSD in 2022 raised concerns about reserve transparency and systemic risk. The current bill reflects an effort to address those gaps. It may also shape how the US engages with digital currencies as other economies, such as the EU and China, advance their frameworks.
The participation of major players like Coinbase and Binance shows that the industry seeks to gain legitimacy and avoid patchy state laws. Traina, a former US ambassador, brings diplomatic weight and public profile to Genius’ lobbying efforts. While critics argue the bill could create regulatory loopholes, supporters believe it sets a clear path for innovation under public safeguards. Its passage would mark a key shift in how Washington treats stablecoins and could influence global crypto policy.
