Crypto Lobbyists Urge Quick Passage of Stablecoin Bill in Senate
In a significant push for regulatory advancement in the cryptocurrency sector, lobbyist groups representing the crypto industry are urging the U.S. Senate to expedite the passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. With potential amendments looming that could jeopardize the bill’s progression, these advocates are keen on maintaining momentum to secure its passage.
Senate Discussions on the GENIUS Act
The GENIUS Act, designed to provide a framework for the oversight and regulation of stablecoins, is reportedly poised for debate in the Senate. Following a procedural vote on May 19 that indicated strong initial support, there is optimism among backers that the bill could soon advance to the House of Representatives.
Crypto advocacy organizations—including the Blockchain Association, the Crypto Council for Innovation, the Digital Chamber, and the DeFi Education Fund—emphasized in a joint statement the importance of a targeted approach to stablecoin regulation. They expressed their commitment to assisting lawmakers in navigating the amendment process while maintaining a focus on the bill’s primary objectives.
Potential Roadblocks Arising from Amendments
While there appears to be solid support for the GENIUS Act, the bill is at risk of being stalled by proposed amendments unrelated to its core focus. Senators Dick Durbin and Roger Marshall have suggested attaching the Credit Card Competition Act (CCCA), which aims to alter how payment networks like Visa and Mastercard charge merchants, to the stablecoin legislation.
This move has generated contention, as critics, including many in the banking sector, argue that it poses an unwarranted interference by the government in financial markets. The modification could distract from the original intent of the GENIUS Act and complicate the legislative process, according to sources familiar with the negotiations.
James Czerniawski, a representative from the libertarian group Americans for Prosperity, publicly denounced the suggested changes, labeling them as “unacceptable” and detrimental to American consumers’ access to credit.
Growing List of Proposed Amendments
In addition to the concerns raised by the CCCA, there are numerous other amendments being considered that could further complicate the stablecoin bill’s passage. These include increased disclosure requirements for government officials holding stablecoins, measures to prevent ties with entities associated with former President Donald Trump, bans on foreign ownership of stablecoin issuers, and reforms related to the Bank Secrecy Act and Anti-Money Laundering regulations.
As political negotiations continue, experts predict that failure to reach a consensus on these amendments could procrastinate the bill’s passage into the week of June 9, potentially derailing what many in the crypto community see as a pivotal opportunity for regulatory clarity.
Conclusion
The situation surrounding the GENIUS Act represents a critical juncture for the future of stablecoin regulation in the United States. As both crypto lobbyists and lawmakers navigate the complexities of legislative procedures, the ultimate outcome of the bill remains uncertain. Stakeholders from the crypto industry are closely monitoring the developments, eager for a resolution that would establish a solid foundation for the evolving digital asset landscape.
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