Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how the United States Senate Banking Committee have approved the GENIUS Act Stablecoin Bill.
GENIUS Act Stablecoin Bill
The senators in the United States have backed a new regulatory path for digital coins as the Senate Banking Committee have backed and approved the GENIUS Act Stablecoin Bill. This has created fresh debates regarding market oversight and consumer safeguards with the evolving landscape within the digital assets space. The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act was passed with an 18-6 vote.
https://x.com/BankingGOP/status/1900203536828252161
The bill will look to create a federal regulatory framework for stablecoin issuers and will now move to the full Senate for consideration and potential approval. Another bill with similar practices is pending in the House of Representatives and both chambers must reconcile their versions before the bill can be sent to the White House.
The GENIUS Act was initially introduced by Senators Bill Hagerty (R-Tenn.), Kirsten Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo.), and Angela Alsobrooks (D-Md.). The Act defines payment stablecoins as digital assets used for transactions and pegged to a fixed monetary value. As part of the bill they look to establish stablecoin issuers’ licensing procedures, reserve requirements, and regulatory standards.
Any firms which own more than $10 billion in stablecoins would be federally regulated as part of the Act, and it would be done so by the Federal Reserve for depository institutions and by the Comptroller of the Currency for non-bank issuers. Any issuers with less than this amount would fall under state oversight, but there are provisions for larger issuers to apply for a waiver to remain state-regulated.
With the bill beginning to gain traction, it has sparked debate as Senate Banking Committee Chairman Tim Scott (R-S.C.) called the bill a necessary step towards stablecoin regulation. He argues that the bill provides clear guidelines to protect consumers while fostering financial innovation. Senator Hagerty described it as a bipartisan effort to promote market competition and stability.
Democrats however have voiced their concerns over the regulatory gaps within the bill. Senator Elizabeth Warren opposed the bill, citing potential national security risk. As part of a hearing which lasted 2.5 hours Warren noted the lack of additional oversight measures and referenced reports of President Donald Trump’s alleged discussions with a stablecoin firm tied to Binance. She went on to suggest amendments which would look to add more regulatory controls, but they were rejected along partisan lines.
Concerns were also raised by Senator Catherine Cortez Masto (D-Nev.) as she argued the bill was incomplete and required further debate. Her criticism was levied at Republican members who have limited discussions on amendments. Chairman Scott defended the committee’s work, stating that extensive efforts had been made to draft a workable bill.
As all of this unfolds the crypto industry is watching along closely. Previous regimes has caused issues in relation to clear regulatory guidelines but it seems like the Trump administration is keen to change that. Democratic-led Senate Banking Committee stalled similar legislation from the House in the past but the Republicans now control both chambers and the stablecoin regulation is now a legislative priority.
https://x.com/SenLummis/status/1900230996189999293
Have a great day.
Peace. CryptoGod-1.
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