TLDR
US Senate to vote on GENIUS Act for stablecoin regulations on June 17.
GENIUS Act tackles crypto industry influence from elected officials.
Debate intensifies as Elizabeth Warren warns of loopholes in GENIUS Act.
Stablecoin legal framework could boost consumer protection and financial stability.
The US Senate is set to vote on the amended version of the GENIUS Act, a bill that could provide the first-ever regulatory framework for stablecoins in the country. The vote, scheduled for June 17, comes after the Senate moved closer to passing the bill in a 68-30 vote earlier this week. The bill aims to regulate stablecoins, which are digital currencies pegged to the value of the US dollar.
GENIUS Act and Its Amendments
The GENIUS Act, or the Guiding and Establishing National Innovation for US Stablecoins Act, has been the subject of much debate. The bill’s revised version now includes several amendments, some of which address concerns related to the influence of elected officials and their families in the crypto industry.
One such amendment aims to curb the potential for lawmakers to profit from their connections to stablecoin issuers.
According to Senate Democrats, the full chamber will vote on the bill on June 17, after proposing a range of changes. “The Senate will vote on the passage of the bill, as amended, at a time to be determined by Majority Leader John Thune and Democratic Leader Chuck Schumer,” said Senate Democrats. These changes were made to gain broader support from both Democrats and Republicans.
Support and Opposition to the Bill
The bill has seen varying levels of support across party lines. A total of 18 Democrats, including Senators Andy Kim of New Jersey and John Hickenlooper of Colorado, joined Republicans to advance the measure.
However, some prominent Democrats, such as Senator Elizabeth Warren from Massachusetts, have raised concerns about the bill’s ability to safeguard consumers, national security, and financial stability. Warren has argued that the bill contains numerous loopholes that could undermine its effectiveness.
While some Republicans support the bill, Missouri Senator Josh Hawley has stated his opposition. He criticized the bill as a “huge giveaway to Big Tech,” arguing that it may disproportionately benefit large corporations. Despite these opposing views, the bill has managed to clear the highest procedural hurdle, suggesting it may gain enough support to pass.
Stablecoin Regulations and Their Potential Impact
If passed, the GENIUS Act will lay the groundwork for stablecoin regulations in the US, creating a legal framework for issuers of these digital assets. Stablecoins have become increasingly popular as a means of facilitating digital payments, especially in the crypto market. However, the lack of clear regulations has raised concerns about their potential risks to the financial system.
Stablecoins are pegged to traditional currencies, such as the US dollar, and are used in various sectors, including payments, remittances, and decentralized finance.
The GENIUS Act aims to address these concerns by establishing a regulatory framework that ensures consumer protection and financial stability. The bill also seeks to clarify the role of various government agencies in overseeing stablecoins, which could lead to greater clarity and confidence in the market.
Other Legislative Efforts on Digital Assets
While the Senate focuses on the GENIUS Act, lawmakers in the US House of Representatives are working on their own efforts to regulate digital assets.
The Digital Asset Market Clarity (CLARITY) Act, which seeks to establish clear roles for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing digital assets, has advanced through two House committees. This bill could also play a crucial role in shaping the future regulatory landscape for cryptocurrencies and digital assets in the US.
With both chambers of Congress taking action on crypto regulation, it remains to be seen whether these bills will gain enough bipartisan support to be signed into law. The outcome of the Senate’s vote on June 17 will be a key development in the ongoing debate over how to regulate stablecoins and other digital assets in the US.
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