On Thursday, the House of Representatives passed the Genius Act, a bill that establishes rules for stablecoins, a type of cryptocurrency pegged to the U.S. dollar, with President Donald Trump expected to sign the legislation into law at a ceremony on Friday afternoon.
Phillips also raised concerns around the structure of the new bill, which creates a dual licensing structure for some stablecoin issuers where they can seek either federal or state supervision. He said that it could create a “race to the bottom” for different jurisdictions seeking to attract crypto companies.
In a briefing call with reporters, a senior Treasury official disputed the point, arguing that without the legislation, the country would have a patchwork of state regulatory frameworks. “Now we have a strong federal baseline that can serve as that sort of federal standard,” the official said.
