US House Drops Its Stablecoin Plan to Back Senate Bill as Ripple CEO Speaks to Lawmakers
Reporting from our crypto policy desk in Washington: In a major shift, the U.S. House of Representatives is abandoning its own stablecoin bill to support a Senate version backed by President Trump. This surprise move comes as Ripple CEO Brad Garlinghouse testifies before the Senate today about the future of crypto regulations. Together, these events signal a turning point for how digital assets will be governed in America.
House Changes Course on Stablecoin Rules
The House will vote next week on the Senate's "GENIUS Act" instead of pushing its "STABLE Act." This follows direct pressure from President Trump, who wants the bill signed before Congress' August break. The GENIUS Act passed the Senate with strong support (68-30) last month and would create America's first federal rules for stablecoins like USDT and USDC. House leaders confirmed they won't merge their bill with the Senate version, speeding up the process.
Key differences between the bills include:
- Stricter rules for big stablecoin issuers (over $10 billion)
- Limits on non-financial companies issuing stablecoins
- Requirements for 1:1 cash reserve backing all stablecoins
Treasury Secretary Scott Bessent believes this could help stablecoins grow into a $3.7 trillion market by 2030. Major companies like Amazon and Bank of America are already exploring stablecoin projects.
Ripple CEO Brings XRP to Senate Hearing
As this stablecoin shift happens, Ripple CEO Brad Garlinghouse is speaking to the Senate Banking Committee today about the need for clear crypto market rules. In his prepared testimony, he officially introduced XRP to senators as a technology for "highly scalable, low-cost, and fast transactions" used in global payments. This marks the first time XRP has been formally presented to U.S. lawmakers as Ripple pushes for the "Digital Asset Market Clarity Act."
Garlinghouse highlighted Ripple's courtroom win against the SEC that established XRP isn't a security when sold to the public. He argued this legal clarity should be extended industry-wide through new laws. His appearance comes as Ripple prepares to launch its own stablecoin, RLUSD, which would benefit from the proposed GENIUS Act rules.
Why This Matters for Crypto Investors
These developments directly impact anyone holding cryptocurrencies:
- Stablecoins get federal backing: The GENIUS Act would require all stablecoin issuers to hold enough cash reserves to cover every token, reducing risk of collapses like TerraUSD.
- XRP gains legitimacy: Ripple's Senate presentation positions XRP as a compliance-friendly crypto, potentially boosting adoption.
- Banking giants enter crypto: JPMorgan's new "JPMD" deposit token shows traditional finance is embracing blockchain technology, with more institutions likely to follow if laws pass.
Market reactions have been positive so far. Ethereum jumped 18% after the Senate passed its stablecoin bill last month, while XRP is up 4% this week ahead of Garlinghouse's testimony.
Political Tensions and Next Steps
Not everyone supports the current approach. Some Democratic senators argue the bills don't address concerns about President Trump's crypto investments. Trump reported earning $57 million from token sales in 2024 alone through his linked company World Liberty Financial.
What happens next:
- The House votes on the GENIUS Act next week during "Crypto Week"
- Lawmakers will also consider the "Digital Asset Market Clarity Act" to set broader crypto rules
- Senate aims to pass market structure laws by September 30
As Senator Bill Hagerty stated, these moves could determine whether the U.S. becomes "a global leader in crypto" or falls behind other countries developing digital asset rules.
