Key notes
- The CEO of Coinbase asks the legislators to adopt the law on engineering.
- The act of engineering aims to regulate stablecoins.
- Armstrong asked legislators to rely on the momentum of Fit21.
The CEO of an exchange of Coinbase cryptocurrency called on the Senate to accept the law of genius. Using his X account, Brian Armstrong revealed that he was supporting the “debate to start the Senate on the law on engineering”.
Congress has a real opportunity this week to advance legislation on stablescoin and market structure. We strongly support the Senate’s starting debate on the genius law – and we need 60 votes to get there. We also welcome the efforts of the house to rely on the momentum of Fit21. The two rooms need …
– Brian Armstrong (@brian_armstrong) May 6, 2025
Armstrong added via X that the Chamber should rely on the Fit21 framework to allow the law “adopting the complete legislation of the stable”. The CEO wants the two chambers to support the adoption of laws that would protect customers and allow the growth of innovation in the American cryptography ecosystem.
Armstrong is known for its position on regulatory clarity, as it considers that the government should disclose the rules that cryptographic companies should follow in the country. In 2023, the CEO of Coinbase revealed that the government seemed to promote threatening application measures, instead of creating clear rules to follow.
The act of genius
On March 18, the senatoric banking committee announced progress on a bill called the Genius Act of 2025 (S. 919), which aims to establish rules for American stablecoins. The objective of the bill is to create stablecoin regulations in the United States.
If it is adopted by the Senate, the law on genius would oblige stablecoin issuers that they keep a dollar in safe assets for each stable issue. These assets may include species, insured bank deposits, cash bills and other investments approved by the government. Stablecoin issuers would only be allowed to use these reserves for limited purposes, such as coins or as guarantee.
The law should enumerate the rules on capital, liquidity and risk, but will not be held to the same standards as traditional banks. Emitters must reveal how stablecoins can be exchanged and provide regular reports verified by accountants. The bill gives federal regulators and states the power to supervise stable issuers and create rules.
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Rose is a writer of cryptographic content with solid experience in finance and technology. It simplifies complex blockchain and cryptocurrency subjects, offering insightful articles and market analysis to help readers sail in the evolving cryptography landscape.
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