US Moves Toward Stablecoin Regulation as Senate Advances Clarity Act and a16z Pushes for Uniform Rules

The U.S. Senate is advancing the Digital Asset Clarity Act, which would ban the Federal Reserve from issuing a retail CBDC, a major boon for private stablecoins like USDC and USDT. The bill, which needs 60 votes to pass, faces opposition from banks over a provision allowing yield on stablecoins. Concurrently, Andreessen Horowitz is urging the Treasury to implement uniform state-level rules under the 2025 GENIUS Act to protect the fungibility of a market that handled over $12 trillion last year.

Senate Digital Asset Clarity Act

• ▪The Clarity Act passed the House of Representatives in July 2025 and cleared the Senate Banking Committee in May 2026 by a 15-9 vote
• ▪The Digital Asset Clarity Act is a legislative priority for the US Senate following its recent recess
• ▪The bill requires 60 votes to pass the full Senate, meaning it needs at least seven Democratic or independent votes to become law

Federal Reserve CBDC prohibition

• ▪A statutory ban on a retail CBDC would remove the Federal Reserve as a potential government-backed competitor to private stablecoin issuers
• ▪The Digital Asset Clarity Act would prohibit the Federal Reserve from issuing a retail Central Bank Digital Currency (CBDC) without explicit Congressional authorization

Circle USDC competitive positioning

• ▪Circle's USDC and Tether's USDT collectively account for the majority of global stablecoin trading volume and on-chain liquidity
• ▪Circle has pursued MiCA compliance in Europe, positioning its USDC stablecoin for use by institutionally regulated entities

Tether USDT market dominance

• ▪Tether's USDT is dominant in offshore and emerging markets but has greater regulatory exposure in jurisdictions requiring audited reserves
• ▪Circle's USDC and Tether's USDT collectively account for the majority of global stablecoin trading volume and on-chain liquidity

GENIUS Act licensing framework

• ▪Over $12 trillion in transactions were processed using stablecoins in 2025
• ▪The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed into law in July 2025, created a licensing framework for stablecoins
• ▪Venture capital firm Andreessen Horowitz (a16z) urged the U.S. Treasury to ensure uniform state-level stablecoin rules to maintain fungibility
• ▪a16z proposed a "passporting" system allowing stablecoin issuers licensed in one Treasury-approved state to operate nationwide without separate approvals

Banking opposition stablecoin yield

• ▪The Senate Banking Committee's version of the Clarity Act includes a provision that would allow stablecoins to offer yield or rewards
• ▪JPMorgan CEO Jamie Dimon opposes the stablecoin yield provision, arguing it would allow crypto firms to compete directly with bank deposits