Trump Pushes Stablecoin Bill as China Expands Digital Yuan Globally

The global race to shape the future of digital currency is gaining momentum as the United States and China take decisive but divergent steps. In Washington, President Donald Trump has called on lawmakers to urgently pass the GENIUS Act, a stablecoin-focused bill aimed at securing US leadership in digital asset regulation. 

Meanwhile, in Beijing, China’s central bank governor Pan Gongsheng announced the establishment of a new international operations center for the digital yuan, signaling the country’s ambition to expand its central bank digital currency globally and promote a more diversified monetary system.

Trump Urges House to Pass GENIUS Act “Lightning Fast” After Senate Approval

In a bold show of support for pro-crypto legislation, US President Donald Trump has called on the House of Representatives to swiftly pass the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, a landmark bill that could significantly reshape the digital asset landscape in the United States. The legislation cleared the Senate in a decisive 68-30 vote earlier this week and now awaits a vote in the House, where Republicans maintain a narrow majority.

“The Senate just passed an incredible Bill that is going to make America the UNDISPUTED Leader in Digital Assets,” Trump declared in a post on Truth Social Thursday. “Get it to my desk, ASAP — NO DELAYS, NO ADD ONS,” he added, urging lawmakers to finalize the legislation without amendments or procedural holdups.

Trump’s post on Truth Social (Source: Truth Social)

A Push Toward Stablecoin Innovation

The GENIUS Act marks a pivotal step in formalizing the US government’s regulatory stance on stablecoins—cryptocurrencies pegged to the US dollar and used primarily for payments and settlements. The legislation mandates 1:1 reserve backing, enforces Anti-Money Laundering (AML) standards, and restricts how stablecoin issuers may deploy reserves. These provisions aim to boost transparency, reduce systemic risk, and position the United States as a global hub for regulated digital dollar assets.

According to the bill’s sponsor, Senator Bill Hagerty (R-TN), the GENIUS Act will allow businesses and individuals to send payments nearly instantly instead of relying on outdated, multi-day settlement systems. “Businesses of all sizes, and Americans across the country, will be able to settle payments nearly instantaneously rather than waiting for days or sometimes even weeks,” Hagerty noted in support of the legislation.

Proponents argue that the GENIUS Act is essential not just for domestic innovation, but for maintaining the global supremacy of the US dollar in a digital-first financial future. With countries like China aggressively piloting state-controlled digital currencies, US lawmakers and industry leaders see dollar-backed stablecoins as a counterbalance to centralized alternatives.

David Sacks, a prominent investor and political ally of Trump, echoed this sentiment, suggesting the GENIUS Act could “reassert American financial leadership globally.” Trump’s vocal backing of the bill adds momentum to a broader strategy to position the US as a dominant force in digital finance.

Political Divides and Crypto Controversies

Despite bipartisan support in the Senate, the bill’s journey to this point hasn’t been without political friction. The GENIUS Act initially failed a cloture vote in May after several Democrats raised alarms over Trump’s close ties to the cryptocurrency sector. Chief among the critics was Senator Elizabeth Warren (D-MA), who accused Trump of crafting legislation that could financially benefit his inner circle.

“Donald Trump and his family stand to make hundreds of millions of dollars from this bill through his USD1 stablecoin,” Warren said during Senate debates. Her reference was to a rumored project reportedly linked to Trump’s associates, which some fear could gain an unfair regulatory advantage under the bill’s framework.

Other Democrats, such as Senator Mark Warner (D-VA), voiced skepticism over Trump’s crypto ambitions but ultimately supported the bill on national interest grounds. “We can’t afford to keep standing on the sidelines,” Warner said, acknowledging the US was at risk of falling behind in the rapidly evolving digital asset space.

The GENIUS Act lays out a comprehensive regulatory framework for dollar-pegged payment stablecoins, offering clarity in an area previously marked by legal ambiguity. Key provisions include:

• Full 1:1 Reserve Backing: All stablecoins must be backed by US dollars or equivalent low-risk assets.

• Federal and State Licensing Options: Issuers must secure either a federal or state license, creating flexibility while ensuring oversight.

• Strict Use of Reserves: Stablecoin issuers may not use reserves for lending or speculative purposes—only for redemptions and designated safe assets like US Treasury repos.

• Mandatory AML Compliance: All issuers must conduct rigorous anti-money laundering and Know Your Customer (KYC) checks to curb illicit usage.

• Consumer Protections: The bill includes rules on redemptions, disclosures, and audit requirements to ensure end-user trust.

These guardrails aim to eliminate the kind of financial engineering and unregulated practices that plagued earlier stablecoin models, such as TerraUSD’s algorithmic collapse in 2022.

A Defining Moment for US Crypto Policy

With House Republicans generally supportive of crypto innovation and Trump applying public pressure, the GENIUS Act is expected to face less resistance in its final legislative hurdle. Still, Democrats may attempt to introduce amendments or delay the process through procedural tactics—something Trump explicitly warned against in his Truth Social post.

As the bill moves to the House floor, all eyes will be on whether the United States finally establishes a regulatory regime that could define the next era of financial infrastructure.

China Accelerates Digital Yuan Expansion as Global Currency Competition Heats Up

Meanwhile, China is doubling down on its central bank digital currency (CBDC) ambitions with a renewed push to expand the global footprint of the digital yuan, or e-CNY. At the prestigious Lujiazui Forum in Shanghai, People’s Bank of China (PBOC) Governor Pan Gongsheng announced the launch of an international operations center for the digital yuan and reaffirmed China’s long-term vision for a multipolar monetary system.

Pan’s remarks underscore China’s strategic positioning of the e-CNY as both a domestic financial innovation and a geopolitical counterweight to the US dollar’s longstanding global dominance. 

The timing of China’s latest CBDC push is not coincidental. In 2025, investor confidence in the US dollar has taken a hit, in part due to heightened economic nationalism and unpredictable tariff policies from President Trump. The dollar’s centrality in the global financial system—already under scrutiny—has now become a catalyst for alternative systems and technologies.

Pan made clear that digital payment technologies can provide a more neutral and resilient foundation for global trade and financial interactions, especially amid mounting geopolitical tensions. “Traditional cross-border payment infrastructures can be easily politicized and weaponized, and used as a tool for unilateral sanctions,” he warned, noting that such systems risk destabilizing global economic order when manipulated for political ends.

His remarks echo a growing sentiment among emerging markets and major economies that current cross-border payment rails, often routed through Western-led networks like SWIFT, are outdated and vulnerable to geopolitical interference.

Building a CBDC Hub in Shanghai

The creation of an international operations center for the digital yuan in Shanghai is a tangible step toward making e-CNY a serious player in global finance. Shanghai, already a top-tier financial hub, is strategically positioned to serve as the bridge between China’s domestic economic engine and international CBDC deployment.

The move also highlights China’s confidence in its years-long CBDC development cycle. Since beginning research into the e-CNY in 2014, China has run several pilot programs in major cities, tested the currency during high-profile events like the Beijing Winter Olympics, and formed technical alliances with global financial institutions to promote interoperability.

China is not alone in the race to digitize fiat currency. While stablecoins like USDT and USDC—pegged to the US dollar—have gained momentum for facilitating borderless transactions in the crypto space, central banks around the world continue to invest in CBDC infrastructure.

In Europe, the European Central Bank is inching closer to a digital euro, despite pushback from privacy advocates. The United Arab Emirates expects to roll out its digital dirham by the end of the year, while Israel recently published design specifications for a digital shekel. Hong Kong, a special administrative region of China, is currently running a pilot program for a stablecoin framework, further blending centralized and decentralized digital payment paradigms.

However, enthusiasm for CBDCs has tempered in recent months. A February 2025 report by the Official Monetary and Financial Institutions Forum (OMFIF) revealed that 31% of central banks have delayed CBDC implementation due to unresolved issues surrounding regulation, privacy, and monetary stability.

China, by contrast, remains resolute. The digital yuan is already integrated into retail payment systems like Alipay and WeChat Pay, and the new Shanghai-based international center is expected to accelerate partnerships with foreign firms, trade zones, and possibly even cross-border trade settlements.

Stablecoins vs. CBDCs: Competing Models

The push-and-pull between stablecoins and CBDCs represents a broader contest between decentralized financial innovation and centralized control. While stablecoins offer borderless, market-driven alternatives to traditional fiat, they are often seen as vehicles for dollar dominance. CBDCs, meanwhile, are tightly controlled by central banks and designed to reinforce sovereign monetary authority.

Pan’s comments illustrate the ideological rift in how countries approach financial modernization. While stablecoins have become crypto’s first mass-market utility, CBDCs offer state-sanctioned alternatives that can integrate with existing legal, financial, and geopolitical frameworks.

China’s move to internationalize the digital yuan has deep strategic implications. If successful, e-CNY could reduce the reliance of regional trade partners on the US dollar, offer a payments infrastructure resistant to sanctions, and potentially serve as a model for other state-backed digital currencies.

By establishing a multipolar currency vision, China is sending a clear message: the era of single-currency dominance is fading, and digital tools like e-CNY will help shape the next chapter of international finance.