Major U.S. Banks Explore Joint Stablecoin Initiative Amid Push for New Crypto Regulations

Several of America’s largest banks are in early discussions to jointly launch a U.S.-backed stablecoin, according to a report from the Wall Street Journal. The move comes as lawmakers ramp up efforts to establish a national regulatory framework for digital assets.

The reported collaboration includes institutions linked to JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, along with entities such as The Clearing House and Early Warning Services LLC—the operator behind the widely used Zelle payment app. While the project remains in preliminary stages, it signals a growing interest among traditional financial players to gain a foothold in the stablecoin space.

Sources familiar with the matter told the Journal that the outcome of the stablecoin venture hinges largely on how U.S. legislation around the digital asset class develops in the coming months.

This week, the Senate advanced the Guiding and Establishing National Innovation for U.S. Stablecoins Act—dubbed the GENIUS Act—a proposed bill that lays the foundation for regulating stablecoins. The act would require all stablecoins issued in the U.S. to be fully backed by fiat reserves such as U.S. dollars or equivalent liquid assets. It also introduces mandatory annual audits for issuers managing over $50 billion in market capitalization and sets specific rules for foreign-backed tokens.

While the GENIUS Act has gained bipartisan traction, some lawmakers have raised concerns over former President Donald Trump’s vocal support of stablecoins and his family’s connection to a controversial crypto project. Trump and his sons have reportedly promoted World Liberty Financial’s USD1 stablecoin, adding a political twist to an otherwise industry-focused policy debate.

Despite the political undercurrents, the broader push toward regulatory clarity has energized both lawmakers and financial institutions to prepare for a more structured digital asset environment.