U.S. Lawmakers Propose Tweaks to Stablecoin Legislation Amid Crypto Market Structure Overhaul

Congressional efforts to refine crypto regulations are gaining momentum as House Representative French Hill and Senator Cynthia Lummis push for adjustments to the GENIUS Act. The legislation, which established federal oversight for stablecoin issuers, may soon see stricter accountability measures for executives and clearer prohibitions on non-financial firms entering the stablecoin space.

The proposed amendments, buried in Section 512 of the House's Digital Asset Market Clarity Act, WOULD mandate annual audits of issuers' financial controls and reinforce consumer protections for wallet ownership. These changes reflect growing bipartisan consensus on shaping a compliant yet innovation-friendly framework for digital assets.

While the Senate takes lead on rewriting the bill, industry watchers note the unusual alignment between House and Senate crypto agendas. The GENIUS Act remains Washington's most consequential crypto policy achievement to date, with regulators already implementing its provisions for dollar-pegged tokens.