Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, said comprehensive stablecoin legislation is expected to be finalized in the coming months, underscoring the government’s urgency to maintain the US dollar’s dominance in onchain activity. 

Speaking at the Digital Asset Summit in New York on March 18, Hines said stablecoin legislation is “imminent” following the Senate Banking Committee’s approval of the GENIUS Act last week. 

The GENIUS Act, which is an acronym for Guiding and Establishing National Innovation for US Stablecoins, establishes collateralization guidelines for stablecoin issuers and requires full compliance with Anti-Money Laundering laws. 

“We saw that vote come out of the Senate Banking Committee in extremely bipartisan fashion, […] which was fantastic to see,” said Hines, adding:

“I think our colleagues on the other side of the aisle also recognize the importance for US dominance in this space, and they’re willing to work with us here, and that’s what’s really exciting about this. You know, there’s not many issues in Washington, DC, in which folks can come together from both sides of the aisle and really propel the United States forward in a way that’s comprehensive.”

Bo Hines (right) speaking at the Digital Asset Summit on March 18. Source: Cointelegraph

When asked about when stablecoin legislation will be passed, Hines said, “I think that stables could be on the president’s desk here in the next two months.”

Right now, the market seems to be underestimating what this bill “could do for the US economy in terms of US dollar dominance, in terms of payment rails, in terms of altering the course of financial markets,” said Hines.

Related: Banks push to block stablecoin legislation over market share fears

Extending the dollar’s hegemony

The US dollar accounts for the vast majority of the $230 billion worth of stablecoins in circulation, suggesting that the greenback remains the currency of choice for funding cryptocurrency accounts and sending remittances overseas. 

Some industry experts believe this will change in the future as stablecoins become multicurrency, but so far, digital dollars remain the overwhelming favorite.

Dollar-denominated stablecoins dominate the market. Source: DefiLlama

US Treasury Secretary Scott Bessent said the Trump administration will use stablecoins to maintain the dollar’s status as the global reserve currency, which partly explains the sense of urgency to push legislation over the finish line.

“We are going to put a lot of thought into the stablecoin regime, and as President Trump has directed, we are going to keep the US [dollar] the dominant reserve currency in the world, and we will use stablecoins to do that,” Bessent told the White House Crypto Summit on March 7.

Treasury Secretary Scott Bessent pictured alongside President Donald Trump at the White House Crypto Summit on March 7. Source: The Associated Press

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

US Representative Ro Khanna, a Democrat from California, said at the Digital Assets Summit on March 18 that Congress “should be able to get” both a stablecoin and crypto market structure bill done this year.

Khanna added that there are 70 to 80 Democrats now who understand the importance of stablecoin legislation in increasing American influence around the world by giving more people access to dollars.

Rep. Ro Khanna (right) at the Digital Assets Summit, March 18. Source: Cointelegraph

Stablecoins are a growing crypto use case, especially in developing countries where there is limited access to physical dollars. There are currently stablecoin bills making their way through both chambers of Congress, including the GENIUS Act in the Senate.

As for a crypto market structure bill, Khanna noted the Financial Innovation and Technology for the 21st Century Act, also known as FIT21, which he worked on with former Representative Patrick McHenry. “I understand that there has to be some tinkering to that,” Khanna said, “but a basic market structure bill should emerge.”

Executives in crypto have said that the industry will benefit more from US regulatory clarity surrounding digital assets than even the strategic Bitcoin reserve. At this time of writing, cryptocurrency prices, including for Bitcoin (BTC), have fallen since the signing of US President Donald Trump’s executive order creating the reserve.

Related: Banks push to block stablecoin legislation over market share fears

Khanna critical of the president’s memecoin

As enthusiastic as Khanna was about Congress passing stablecoin and crypto market regulation bills this year, he was equally critical about President Trump’s memecoin, Official Trump (TRUMP).

“I’ll say this just to challenge folks,” Khanna said. “I’ve been a supporter of blockchain, of crypto technology, but I criticize this idea of the president having a memecoin. I don’t think any elected official should be having a memecoin, and those types of things, in my view, distract from the fundamental technology and making the case.”

He added, “We have to recognize that those types of things are not helpful in convincing the American public that there’s an underlying technology that is valuable.”

Related: What is TRUMP? Donald Trump’s billion-dollar memecoin

President Trump’s memecoin and his family’s crypto ventures may raise conflict-of-interest concerns, and California Representative Maxine Waters has said the infamous memecoin potentially opened the door to corruption and may risk national security.

California Representative Sam Liccardo has introduced a bill that would make it illegal for US presidents, members of Congress, senior government officials, and their spouses and children to issue or sponsor commodities, securities or cryptocurrencies.

Magazine: X Hall of Flame: Memecoins will die and DeFi will rise again — Sasha Ivanov

Solana futures (SOL) on the Chicago Mercantile Exchange (CME) went live on March 17, with a trading volume of $12.1 million on day 1, which fell short compared to Bitcoin (BTC) and Ethereum’s (ETH) CME futures debut.

CME Crypto futures comparison by Vetle Lunde. Source: X.com

Vetle Lunde, Head of Research at K33Research, compared the difference between Bitcoin (BTC), Ether (ETH) and Solana (SOL) CME futures trading performances on their launch day, and it is clear that SOL’s CME futures volume and open interest came in far below its competitors.

However, Lunde pointed out that if normalized volumes to the market cap are evaluated, SOL’s launch “aligns closer to the two.”

Was the SOL CME futures launch a dud?

Throughout the current bull market, spot ETF approvals and CME futures contract launches have consistently boosted investor sentiment and put wind behind the sails of various cryptocurrencies. Comparing the normalized volumes adjusted for the market cap differences of BTC, ETH and SOL on their first CME futures trading day provides a fairer comparative analysis.

Normalized volume measures trading activity relative to a crypto asset’s market cap, offering a transparent evaluation across different cryptocurrencies. This metric is valuable since it allows an understanding of institutional engagement with respect to a crypto asset’s market cap.

Normalized volume comparison. Source: Cointelegraph

As shown above, Bitcoin has the highest normalized volume with 0.0319%, while ETH and SOL fell behind with 0.0173% and 0.0166%, respectively. A greater normalized volume suggests higher investor interest per unit or market cap for Bitcoin.

Additionally, the similarity between ETH’s and SOL’s normalized volumes (roughly 0.017%) indicates that Solana’s trading activity scale is similar to Ether’s despite the trading volume differences of more than $20 million on day 1 between ETH and SOL’s CME futures.

Related: Solana deletes ‘cringe’ ad criticized for being ‘tone deaf’ on gender issues

Will SOL CME futures follow ETH or BTC’s performance?

Following the debut of Bitcoin CME futures on Dec. 18, 2017, BTC declined by 26%, dropping from $19,000 to $14,000 by Dec. 31, 2017. The correction continued into 2018, marking the beginning of a collective crypto bear market.

Bitcoin, Ethereum and Solana CME launch, price reaction. Source: Cointelegraph/TradingView

Ether price registered a rally of 150% to a new all-time high at $4,384, 93 days after the CME futures launch on Feb. 8, 2021. Following a new all-time high, a sharp correction occurred, but the altcoin rallied again toward the end of 2021 to attain its current all-time high at $4,867 in November 2021.

Considering the price trends of Bitcoin and ETH, SOL’s price may experience a less enthusiastic rally. The absence of upward price movement after its CME futures launch suggests a lack of investor excitement.

However, from a long-term perspective, SOL’s presence in the CME increases the opportunities for Solana’s liquidity and price discovery as it attracts institutional engagement. A wider impact could potentially unfold over time as better market conditions and favorable bullish price and protocol revenue projections draw traders’ interest.

Related: Bitcoin stalls under $85K— Key BTC price levels to watch ahead of FOMC

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.