Gillibrand also warned that yield-bearing tokens could undermine community banking. Meanwhile, Wyoming Governor Mark Gordon also spoke at the DC Blockchain Summit, and announced a July launch for the state’s USD-backed stablecoin. SEC Commissioner Hester Peirce echoed calls for clearer, lasting crypto rules, as the SEC pivots under the Trump administration. With Congress ramping up legislation and Paul Atkins poised for confirmation as the SEC Chair, the US is on the brink of reshaping its digital asset regulatory landscape.
Gillibrand Defends Local Banks Against Stablecoin Disruption
At the 2025 DC Blockchain Summit that is held in Washington, DC, US Senator Kirsten Gillibrand voiced her strong support for stricter regulations on stablecoin issuers to protect the traditional banking sector. The New York Democrat argued that allowing stablecoin providers to offer yield-bearing products could significantly undercut local banks, which rely on customer deposits to issue home mortgages and small business loans. According to Gillibrand, if consumers shift their funds away from local banks in favor of interest-bearing stablecoins, it could lead to the collapse of key financial services that communities depend on.
Sen. Gillibrand at the DC Blockchain Summit
She also praised New York's financial regulatory framework as one of the most robust globally, and advocated for the adoption of similar standards across both state and federal levels to ensure consumer protection and legal compliance in the digital finance space. Her remarks were tied to the broader legislative effort behind the GENIUS Act, which is a stablecoin regulation bill that is co-sponsored by Gillibrand and introduced by Senator Bill Hagerty in February.
The main goal of the GENIUS Act is to create a comprehensive framework for the issuance and oversight of fiat-backed digital tokens. It was updated on March 10 to include enhanced anti-money laundering (AML) provisions, stricter know your customer (KYC) rules, financial transparency standards, and safeguards for consumers. The Senate Banking Committee approved the bill with an 18-6 vote on March 13, moving it closer to a full vote in both chambers of Congress before potentially being signed into law by President Donald Trump.
However, the bill has faced some criticism from members of the crypto industry who see it as a covert move toward establishing a central bank digital currency (CBDC) through private actors. Jean Rausis, co-founder of the decentralized trading platform Smardex, warned that centralized stablecoins could become tools for financial surveillance and censorship. He warned that such systems might eventually give governments the power to freeze assets or block people from accessing financial services entirely.
Wyoming Stablecoin Set for July Launch
Despite Gilibrand’s concerns, Wyoming Governor Mark Gordon announced that the state’s highly anticipated stablecoin could be ready for launch by July. This is a huge milestone in the state’s years-long effort to embrace digital asset innovation.
At the DC Blockchain Summit on March 26, Gordon talked about the efficiency of the Wyoming state government in adopting blockchain technology. In fact, the Wyoming Stable Token Commission revealed that it formally partnered with LayerZero, an interoperability protocol, to handle token development and distribution. Executive Director Anthony Apollo confirmed that Wyoming stable tokens are already live on several test networks.
The project traces its roots back to February of 2022, when Wyoming lawmakers introduced the Wyoming Stable Token Act. The legislation proposed a state-issued stablecoin that is pegged to the US dollar and fully redeemable for fiat currency. It was signed into law in March of 2023, and allowed the state treasury to assemble a team of financial and technical professionals to oversee the stablecoin’s issuance and supply management.
Since then, the state steadily built the infrastructure required to bring the stablecoin to market. In August 2024, Governor Gordon told attendees at the Wyoming Blockchain Symposium that the launch was being targeted for Q1 2025. Taking a very different approach from Gilibrand, he also criticized the dominance of “too big to fail” institutions in US finance and described the Federal Reserve Bank as a barrier to innovation.
The Wyoming stablecoin will be backed by short-term US Treasury Bills and repurchase agreements, providing a secure and liquid foundation for its value. Apollo also advocated for putting the state's public budget on-chain, and argued that blockchain technology can improve transparency, accountability, and government efficiency. Wyoming is represented in the Senate by crypto-friendly lawmaker Cynthia Lummis, and continues to position itself as a leader in digital asset regulation and innovation.
Hester Peirce Calls for Lasting Crypto Rules
SEC Commissioner Hester Peirce has called for more permanent and transparent regulatory structures for the crypto industry that can endure changes in political leadership. Peirce also spoke at the DC Blockchain Summit on March 26, and she placed a lot of emphasis on the importance of rulemaking and congressional legislation over temporary agency guidance, which can shift with each administration.
She specifically argued that the current lack of clarity leaves developers too focused on legal ambiguity, particularly around the Howey test, rather than innovation. Peirce also pointed out that she wants clearer boundaries for what falls under the SEC’s jurisdiction and straightforward guidance on how projects can proceed if they fall within that scope.
Hester Peirce speaking at the DC Blockchain Summit
Her comments were made at a time when the SEC recently dropped several high-profile enforcement actions against crypto firms, including Coinbase, Ripple, Kraken, and Immutable. This shift in posture is being interpreted by some people in the industry as a political move that is aligned with President Donald Trump’s administration, which has been viewed as more industry-friendly. Acting SEC Chair Mark Uyeda led the commission during this transitional period, but his leadership may soon change.
Paul Atkins, a former SEC commissioner and Trump’s recent nominee, is scheduled to testify before the Senate Banking Committee on March 27. His confirmation could pave the way for an even more favorable regulatory environment for digital assets.
Atkins holds investments in Securitize, which is a real-world asset tokenization platform, and is connected to a consulting firm linked to the collapsed exchange FTX. His ties to the industry and prior experience made him a very popular figure among crypto advocates, though it remains to be seen whether the full Senate will confirm him for a term that will run through 2031.
Meanwhile, the 119th Congress has shown increasing interest in establishing a clear regulatory framework for digital assets. A recently proposed market structure bill aims to better define the responsibilities of the SEC and the Commodity Futures Trading Commission in overseeing crypto markets. On his third day back in office, Trump signed an executive order launching a working group to explore comprehensive stablecoin regulations, which means that the administration is working hard already to create a much more structured approach to crypto policy.
