Rep. Brad Sherman (D-CA-32) opposed government stablecoin payments during a Thursday House Financial Services Committee hearing, stating they would 'sanctify an alternative to the U.S. dollar' designed to 'facilitate a tax-evasion economy.' His rebuke followed National Credit Union Administration Chairman Kyle Hauptman's proposal that stablecoins could deliver tax refunds on Sundays or holidays and provide emergency stimulus payments in a 'more timely and secure manner' through around-the-clock settlement. The hearing examined banking regulators' progress implementing the GENIUS Act stablecoin oversight framework passed last summer.
Sherman Opposes Government Stablecoin Payments
Sherman stated he 'can't think of a worse idea' than government payments in stablecoins during the Oversight of Prudential Regulators hearing. He argued such payments would legitimize 'an alternative designed to facilitate a tax-evasion economy.'
The congressman warned that 'the smartest, or at least the best-paid lawyers in the country' were already seeking loopholes around interest payments on stablecoins. He urged supervisors to 'write regulations that withstand that.'
Hauptman Defends Stablecoins for Dollar Dominance
Hauptman framed dollar-pegged tokens as defending the greenback against rivals in Beijing, Tehran and Moscow. He said stablecoins could maintain the dollar's 'global status' through stimulating demand for Treasuries.
The NCUA Chairman noted stablecoins settle around the clock, unlike traditional rails bound by business days. He suggested 'Tax refunds may eventually arrive on Sundays or holidays.'
Gould Addresses World Liberty Financial Charter Scrutiny
Comptroller of the Currency Jonathan Gould defended his agency's handling of Trump-linked World Liberty Financial's national trust-bank charter application. Rep. Gregory Meeks (D-NY-5) challenged Gould's independence, asking whether he was 'working for the American people or working for the Trump family.'
Gould called Meeks' comments 'unfortunate and without precedent.' He stated, 'Your attempts to continue to pressure me are the only political pressure I've felt from anyone other than your Senate colleagues.'
World Liberty Financial claimed last month the firm was 'in the final stages' of receiving conditional approval. The firm maintained the Trump sons haven't abandoned the project despite regulatory challenges.
Regulators Advance GENIUS Act Implementation
FDIC Chairman Travis Hill said his agency and others will propose customer identification requirements for stablecoin issuers in the very near future. Federal regulators outlined progress on stablecoin oversight under the GENIUS Act passed last summer.
Senator Elizabeth Warren (D-MA) called approvals for firms such as Coinbase and Ripple illegal. The Trump White House ordered the Fed to review crypto firms' master account access and directed federal regulators to remove 'overly burdensome and fragmented regulations and supervisory practices.'
Crypto Firms Gain Banking Access
Falcon Finance launched its fUSD stablecoin Wednesday with Anchorage Digital—the first federally chartered crypto bank—as a GENIUS-compliant payments token. The Federal Reserve granted crypto exchange Kraken a master account with limitations akin to the 'skinny' master account proposed by the Fed's board of governors last year.
Banking charter approvals for crypto firms have become a political flashpoint.
FAQ
What did Rep. Brad Sherman say about government stablecoin payments at the House hearing?
Rep. Brad Sherman stated government stablecoin payments would 'sanctify an alternative to the U.S. dollar' designed to 'facilitate a tax-evasion economy' during a Thursday House Financial Services Committee hearing.
Why did NCUA Chairman Kyle Hauptman propose stablecoins for government payments?
Hauptman said stablecoins settle around the clock unlike traditional rails bound by business days, suggesting tax refunds could arrive on Sundays or holidays and emergency stimulus payments could be delivered in a 'more timely and secure manner.'
What did FDIC Chairman Travis Hill announce about stablecoin regulations?
Hill said his agency and others will propose customer identification requirements for stablecoin issuers in the very near future as part of implementing the GENIUS Act passed last summer.
