U.S. Senate to Vote on Stablecoin Bill Before Memorial Day

A full Senate vote on the long-anticipated U.S. stablecoin legislation is expected in May, according to a recent Politico report citing an anonymous source. Senate Majority Leader John Thune reportedly plans to bring the bill to a vote before Memorial Day (May 26), marking a significant step toward regulatory clarity for the crypto industry.

The legislation, which cleared the Senate Banking Committee in March, aims to establish clear federal guidelines for the issuance of stablecoins—digital assets pegged to the U.S. dollar. Under the bill, institutions wishing to issue stablecoins would be required to obtain proper licenses and adhere to strict reserve requirements to ensure full redeemability.

While the bill has garnered bipartisan backing, it faces criticism from some Democrats, including Senator Elizabeth Warren, who argues it lacks sufficient consumer protections. Despite this opposition, the legislation is likely to pass with cross-party support, delivering a long-awaited win for both crypto firms and traditional financial institutions exploring stablecoin issuance.

The push for regulatory clarity comes as stablecoins continue to gain mainstream attention. Fidelity, one of the largest mutual fund companies, is reportedly exploring entry into the stablecoin market. Meanwhile, industry leaders like Mike Novogratz predict that stablecoins could disrupt the global foreign exchange (FX) market within the next five years.

If passed, the legislation would create a foundational framework for dollar-pegged digital currencies in the U.S., helping to legitimize their role in the broader financial ecosystem. With increasing institutional interest and political momentum, the stablecoin bill could reshape the future of crypto regulation and adoption across the United States.