US Banks Explore Joint Stablecoin Amid GENIUS Act Debate

Some of the largest US banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are reportedly exploring the launch of a jointly developed stablecoin. This initiative involves payment firms like The Clearing House and Zelle operator Early Warning Services, marking a significant move by traditional finance into the tokenized dollar space. The discussions are in preliminary stages, with no definitive timeline or launch structure established yet. However, this move signals growing institutional interest in the infrastructure behind digital dollars, particularly as legislation begins to draw clearer lines around stablecoin issuance and oversight.

The news comes as the US Senate advances the GENIUS Act, a sweeping bill to regulate stablecoins, which has now become the center of a political battle over ethics. Senate Democrats, led by Chuck Schumer, Elizabeth Warren, and Jeff Merkley, are preparing an amendment to block any sitting US president from profiting from stablecoin-related ventures. This move is in response to growing concerns about President Donald Trump’s ties to the USD1 stablecoin and recent crypto-linked fundraising events. The amendment aims to ensure that no sitting US president, or immediate family members, can financially benefit from stablecoins or entities that would fall under the jurisdiction of the GENIUS Act. It would likely require presidents to disclose crypto holdings, divest from stablecoin-related ventures, and prohibit any affiliated token from being used in state-sanctioned programs or infrastructure.

If passed into law, the GENIUS Act would become the most comprehensive federal framework yet for stablecoins. It would mandate that all US-issued stablecoins be fully backed by cash or cash-equivalent reserves, require annual audits for issuers managing over $50 billion in stablecoin assets, introduce explicit limitations on stablecoins issued by foreign entities or with non-US backing, and establish a licensing regime under the oversight of the Treasury and Federal Reserve. The bill is widely viewed as a response to both the exploding growth of the stablecoin market and concerns over financial stability, monetary sovereignty, and systemic risk.

A joint banking stablecoin would present a direct challenge not only to fintech giants but also to politically-aligned ventures. Unlike those projects, a stablecoin developed under the collective governance of multiple FDIC-insured banks and legacy payment networks could offer the type of trust, compliance, and interoperability regulators crave. Banking insiders suggest that such a token could be integrated with existing rails or serve as a foundational layer for interbank settlements, cross-border payments, or even commercial use cases like payroll and B2B invoicing.

The GENIUS Act now awaits final floor amendments and votes in the Senate before heading to the House of Representatives. Industry stakeholders are watching closely, as the passage of the bill could unlock a wave of corporate and banking investment into stablecoin ventures that have long awaited regulatory certainty. If the bill becomes law, the stablecoin landscape in the US will fundamentally change, offering clearer lanes for banks, tech companies, and crypto-native startups to coexist or compete in. Meanwhile, the notion of a JPMorgan-backed stablecoin sharing infrastructure with Zelle and Wells Fargo represents a potentially seismic shift in digital payments, an answer to years of crypto innovation that could either accelerate or contain it, depending on how it unfolds.

As the Senate returns to session, all eyes will be on whether the GENIUS Act will include stronger ethics language, or whether stablecoin regulation in the US will go forward without clear limits on who gets to profit from it at the very top. The clash over this amendment shows broader concerns around digital asset regulation, especially when entwined with national leadership. Supporters of the GENIUS Act argue that the stablecoin market’s explosive growth demands urgent federal oversight. They warn that holding the bill hostage over political feuds could stall a rare opportunity for bipartisan progress. Opponents, however, insist that any failure to install ethical guardrails could open the door for “presidential profiteering” at the cost of democracy.