House and Senate Republicans Clash Over Crypto Policy Amid Push for Stablecoin Legislation

Congress is once again bracing for a political standoff—this time over cryptocurrency—as tensions mount between House Republicans, Senate Republicans, and President Donald Trump. At the heart of the dispute lies a critical question: how aggressively should Republicans pursue Trump’s goal of making the United States the global leader in digital assets?

Last month, the Senate passed a bipartisan bill focused on regulating stablecoins, a specific type of cryptocurrency tied to the U.S. dollar. The bill, known as the GENIUS Act, is a major step forward for crypto regulation, earning support from both sides of the aisle. But now, as the measure heads to the House, Republican lawmakers are divided on whether to limit action to just the stablecoin issue or to push forward with a broader overhaul of crypto market rules.

House Republicans, many of whom have spent years crafting comprehensive digital asset legislation, are gearing up for what they’re calling “crypto week” when lawmakers return to Washington next Monday. Their goal is to not only consider the Senate’s stablecoin bill but also vote on a broader market structure package that would reshape how cryptocurrencies are regulated under U.S. securities and commodities laws.

However, this push for wider reforms is running into resistance—from both Trump and Senate Republicans. The President has made clear he wants a swift, clean passage of the stablecoin bill, without any additions or changes that could delay its enactment. His allies in the Senate agree, emphasizing that any attempt to revise the bill would likely doom its chances of receiving enough Democratic support to pass.

Senator Bill Hagerty (R-Tenn.), the lead sponsor of the GENIUS Act, has warned that reopening negotiations could unravel the fragile bipartisan coalition that allowed the bill to pass the Senate with a 68-30 vote.

“For me to get eight or nine Democrats to vote for something here is extraordinarily difficult to do,” Hagerty noted, reflecting the challenge of building consensus around digital asset policy in an increasingly divided Congress.

Despite these warnings, some House Republicans remain determined to seize the moment and push for a more ambitious regulatory framework. Representative French Hill, Chair of the House Financial Services Committee, is leading the charge with his comprehensive market structure bill. This proposal seeks to clarify which agencies regulate which aspects of the crypto sector, a major point of confusion that has slowed the industry’s growth and drawn criticism from both investors and developers.

While Hill has pledged not to merge his legislation with the GENIUS Act, negotiations are still underway over potential tweaks and whether the House might attempt to amend the Senate bill before passing it.

At stake is more than just political positioning. The stablecoin bill, if enacted, would mark the first time the U.S. has adopted clear regulations for a key area of the digital asset market. Stablecoins—cryptocurrencies designed to maintain a steady value, often pegged 1:1 to the U.S. dollar—are widely used by traders to move funds between different tokens or exchanges. Their use has surged in recent years, sparking growing concern over their reliability and the risk they may pose to the broader financial system.

The GENIUS Act aims to mitigate these risks by requiring stablecoin issuers to back their tokens with highly liquid assets such as short-term Treasury securities and actual dollars. It would also require monthly public disclosures detailing the reserves behind each coin, a move intended to boost transparency and trust.

Supporters of the bill argue that this kind of regulatory clarity is essential for the stablecoin sector to mature and expand safely. Industry leaders have long called on Congress to establish a clear legal framework, and the sector spent over $119 million in the last election cycle supporting pro-crypto candidates from both parties.

This latest legislative push also reflects President Trump’s evolving approach to cryptocurrency. During his recent campaign, Trump openly courted crypto investors and promised to make the U.S. a global hub for digital finance. Since taking office, his administration has ramped up its efforts to modernize crypto regulations and attract innovation in the space.

Bo Hines, who leads Trump’s Council of Advisers on Digital Assets, said the administration is aiming to have the stablecoin bill on the President’s desk by the end of August. But that timeline could be jeopardized if the House and Senate remain at odds.

While both chambers agree on the need for regulation, the path forward remains uncertain. As crypto week approaches, all eyes are on the House—and whether Republicans will stay the course with the Senate’s bill or attempt to reshape the future of U.S. crypto policy in one bold legislative swing.