Written by After facing initial Democratic resistance due to concerns about the Trump family’s involvement in the cryptocurrency industry, the Senate has now moved forward with a bill aimed at regulating stablecoins. This legislation, known as the GENIUS Act, seeks to establish a regulatory structure for stablecoins, which are cryptocurrencies whose value is linked to assets like the U.S. dollar.
The bill had previously advanced from the Senate Banking Committee with bipartisan support in March, but its progress stalled earlier this month when Democratic support waned. This shift in stance was reportedly influenced by worries surrounding former President Trump and his family’s crypto-related business dealings.
However, in a recent vote, the measure garnered enough support to limit debate and proceed toward a final vote, passing with a 66-32 margin. Senate Majority Leader John Thune criticized the earlier Democratic blockade, emphasizing the bill’s bipartisan nature and the consensus behind it.
Negotiations occurred after the initial failed vote, leading to renewed support from some Democrats. Senator Mark Warner of Virginia, while acknowledging the bill isn’t perfect, called it a “meaningful step forward,” highlighting the nearly $250 billion stablecoin market and the necessity for clear regulations to protect consumers, national security, and innovation. Despite this support, Warner also voiced concerns shared by other senators regarding the Trump family’s alleged use of crypto to evade oversight.
Senator Elizabeth Warren of Massachusetts, a leading Democrat on the Senate Banking Committee, remains a vocal opponent, arguing that the bill endangers consumers and could enable corruption. She stated that her concerns haven’t been addressed and urged her colleagues to reject the current version, suggesting that a weak bill is worse than no bill at all.
Earlier this month, the bill failed to reach the required 60 votes due to opposition from all Senate Democrats and two Republicans. Their reasons included concerns about overregulation and the bill not prohibiting big tech companies from issuing their own stablecoins.
Senator Bill Hagerty of Tennessee, the bill’s sponsor, defended the legislation, asserting that the lack of a regulatory framework is causing uncertainty and driving innovation overseas. He emphasized the bipartisan policy agreement and urged overcoming partisan politics to secure a positive outcome.
Disclaimer:Â This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research or consult a licensed financial advisor before making any investment decisions. We do not take responsibility for any financial outcomes based on the information provided.
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