Maxine Waters Urges Support for Stablecoin Bill

Stablecoins have taken center stage in the evolving digital asset landscape, with regulatory discussions intensifying and market dynamics shifting. Circle’s USD Coin (USDC) recently reached a $56.3 billion market capitalization, reflecting a strong recovery from the bear market as the company expands to new blockchain networks. Meanwhile, lawmakers in the US continue to debate stablecoin regulations, with Representative Maxine Waters advocating for a bipartisan bill while Republican lawmakers push their own proposals. As regulatory clarity remains a key focus, the stablecoin market is growing, with USDC and Tether’s USDT competing for dominance in a rapidly evolving sector.

Maxine Waters Advocates for Bipartisan Stablecoin Bill Amid Republican Proposals

California Representative Maxine Waters has urged lawmakers in the US House of Representatives to support a stablecoin bill drafted in the previous session of Congress, emphasizing the need for a bipartisan approach to digital asset regulation.

In a notice issued on Feb. 10, Rep. Waters stated that a 2024 stablecoin bill, originally drafted by then-House Financial Services Committee Chair Patrick McHenry alongside her staff, should be the legislative framework moving forward. The California lawmaker underscored that this bill represented the culmination of three years of bipartisan work aimed at establishing comprehensive stablecoin regulations in the US financial system.

Among its provisions, the bill seeks to close loopholes that allow stablecoin issuers to operate abroad while circumventing US financial regulations. Additionally, it introduces stricter measures to prevent convicted fraudsters from holding senior positions in stablecoin firms, reinforcing safeguards against potential misconduct in the rapidly growing sector.

“At the start of this Congress, Chair Hill extended a hand of bipartisanship to work on stablecoins legislation,” Waters stated. “I firmly believe that the legislation that I’ve unveiled today provides the best foundation for moving forward and getting urgently needed stablecoins legislation signed into law.”

Waters’ announcement followed the introduction of a competing payment stablecoin bill discussion draft by House Financial Services Committee Chair French Hill and Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence Chair Bryan Steil. The Republican-sponsored bill aims to establish a regulatory framework for stablecoin issuers, but it has not been developed in collaboration with Democratic lawmakers, prompting concerns about its viability as a bipartisan measure.

The GOP-backed proposal, named the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, was included in the agenda for an upcoming congressional hearing on digital assets. Notably, Waters and McHenry’s previously drafted legislation was absent from the hearing’s official memo, raising concerns about whether bipartisan efforts will gain traction amid the ongoing political divide.

A key distinction between the STABLE Act and its 2023 counterpart, the Clarity for Payment Stablecoin Act, is the expanded authority it grants to the Office of the Comptroller of the Currency (OCC). Under the new proposal, the OCC would have the power to approve and supervise federally qualified nonbank payment stablecoin issuers. This provision has drawn criticism from Democratic lawmakers, with one staffer stating that Waters is “not supportive” of the Republican-led bill.

Meanwhile, in the Senate, Republican legislators have introduced another stablecoin-focused proposal: the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. Unveiled on Feb. 4, this bill aims to bring certain stablecoin issuers under the regulatory oversight of the Federal Reserve, a move intended to enhance stability and accountability in the sector. The GENIUS Act has been referred to the Senate Banking Committee, where it will undergo further deliberation.

The Political Landscape for Crypto Regulation

Republican lawmakers currently hold only a slim majority in the House, making it challenging to pass cryptocurrency-related legislation without bipartisan support. While stablecoin regulations have been a pressing issue for both parties, disagreements over the appropriate regulatory framework continue to stall progress.

Complicating matters further, US President Donald Trump has signaled his administration’s intention to prioritize digital asset regulation. In a Jan. 23 executive order, Trump announced the establishment of a crypto working group, indicating that stablecoin oversight could become a legislative priority in 2025. However, his administration’s approach to digital assets has faced legal challenges, raising questions about the feasibility of its proposed regulatory actions.

David Sacks, the White House’s designated crypto and artificial intelligence czar, has echoed the president’s position, emphasizing the need to “bring that innovation [from the stablecoin market] onshore.” His comments come as major stablecoin issuers make strategic moves to position themselves within favorable regulatory environments. Circle, the company behind USDC, remains headquartered in the United States, while Tether—the issuer of the largest stablecoin by market capitalization, USDT—recently announced plans to relocate from the British Virgin Islands to El Salvador.

As the debate over stablecoin regulation intensifies, the competing bills in Congress show the growing divide between Democratic and Republican approaches to digital asset oversight. 

The coming weeks will be crucial in determining whether lawmakers can bridge their differences and push forward comprehensive stablecoin legislation. With digital assets playing an increasingly significant role in the global financial system, the outcome of these legislative efforts will have lasting implications for the future of stablecoins in the United States.

USDC Market Cap Soars to $56.3 Billion as Circle Expands Blockchain Presence

In other news, Circle’s USD Coin (USDC) has surged to a $56.3 billion market capitalization as of Feb. 10, according to CoinGecko data, marking a full recovery from its bear market slump and signaling renewed investor confidence in the stablecoin sector.

The latest figures reflect a significant 23.4% increase from the $45.6 billion recorded on Jan. 8. At its lowest point during the most recent bear market, USDC’s market cap had dropped to $24.1 billion in November 2023. The stablecoin’s resurgence can be attributed to Circle’s strategic expansion efforts, which have seen USDC integrated into additional blockchain ecosystems.

Circle has been aggressively expanding its stablecoin infrastructure, recently deploying USDC on emerging blockchain networks such as Sui and Aptos. Moreover, in January 2025, the company minted $6 billion worth of USDC on the Solana blockchain, reinforcing its position as a key player in the rapidly evolving decentralized finance (DeFi) landscape.

Despite USDC’s rapid growth, Tether’s USDT remains the world’s largest stablecoin by market capitalization, with $141.6 billion worth of tokens in circulation as of Feb. 10. Data from CoinGecko indicates that USDT’s market cap has increased by over $4 billion in the past 30 days alone.

According to DefiLlama, USDT still holds a commanding 63% share of the stablecoin market. However, USDC has made substantial gains, increasing its market share from 19.4% a year ago to 25% today. 

Stablecoin regulation has become a focal point for US policymakers, particularly following the transition of power under President Donald Trump’s administration. With digital assets playing an increasingly prominent role in global finance, lawmakers have begun pushing for clearer regulatory frameworks to govern the issuance and oversight of stablecoins.

Stablecoins and Their Role in Global Finance

Stablecoins, which are digital assets pegged to fiat currencies like the US dollar, play a crucial role in digital payments and financial inclusion. In many developing economies, they serve as a hedge against inflation, offering a more stable store of value than local fiat currencies. Additionally, stablecoin holders can generate yields on decentralized finance (DeFi) platforms, functioning similarly to interest-bearing bank accounts.

The overall stablecoin market has seen remarkable growth, with its total market capitalization rising from $121 billion in August 2023 to $224 billion as of Feb. 10. This rapid expansion shows the increasing demand for stable digital assets, as investors and financial institutions recognize their utility in cross-border payments, remittances, and decentralized finance applications.

As Circle continues to expand USDC’s reach across multiple blockchain networks and regulatory discussions gain momentum, the stablecoin sector is poised for further evolution. The battle for stablecoin dominance between USDC and USDT will likely intensify, with regulatory clarity playing a decisive role in shaping the future landscape of digital payments.

With stablecoins now a key component of the global financial system, market participants will be closely watching developments in Washington and beyond. Whether through legislative action or organic market growth, the stablecoin sector is on track to redefine the future of money in the digital age.