House Hearing Highlights Divide Over Economic Growth and Stablecoin Regulation

The House Financial Services Committee held a hearing titled 'Strengthening The American Economy: Promoting Growth, Opportunity, And Prosperity' to discuss economic growth, affordability, housing, access to capital and financial innovation. Committee Republicans pointed to legislation on stablecoins, digital assets, capital markets and housing, while Democrats focused on affordability, consumer protection and economic inequality.

Circle President Heath Tarbert testified that the dollar's share of global foreign-exchange reserves has declined from more than 70 percent in the late 1990s to approximately 57 percent as of the first quarter. He argued that this decline underscores the importance of maintaining the dollar's role as financial infrastructure increasingly moves online.

Congress has already moved on several fronts, enacting laws such as the GENIUS Act and the 21st Century ROAD to Housing Act. The GENIUS Act established a federal regulatory framework for payment stablecoins, which is expected to take effect January 18, 2027, unless final implementing regulations trigger an earlier effective date.