- Senate Majority Leader John Thune indicated possible acceptance of Democratic amendments to move the GENIUS Act ahead of a key vote.
- Nine Senate Democrats declared opposition to the bill unless it includes stricter protections on anti-money laundering, security, and accountability.
- The legislation would establish the first federal framework for stablecoins in the U.S., but needs bipartisan support to pass.
Senate Majority Leader John Thune signaled a willingness to accommodate Democratic changes to the GENIUS Act as Congress readies for a crucial vote before its August recess. The legislation is aimed at creating a comprehensive federal regulatory framework for stablecoins, which are cryptocurrencies pegged to assets like the U.S. dollar.
Plans for a speedy floor vote encountered obstacles after nine Senate Democrats, including four who had previously shown openness to the measure, issued a joint statement opposing the bill without stronger safeguards. According to Thune, “changes can be made on the floor for sure,” as he told reporters Monday, per Politico. He noted that Republicans are waiting to hear the Democrats’ specific demands.
The Democrats’ statement explained their concerns, calling for “stronger provisions” in areas such as anti-money laundering, oversight of foreign issuers, national security, financial safety, and increased accountability. Despite holding 53 seats, Republican leaders need at least seven Democratic votes to pass the bill and advance U.S. regulation of stablecoins.
The GENIUS Act would let nonbank firms issue stablecoins in the U.S., provided they maintain reserves equal to the value of their stablecoins in high-quality, liquid assets. In contrast, House lawmakers have proposed tighter requirements through the competing STABLE Act. The regulatory gap targeted by this legislation has grown as stablecoins have reached a market capitalization of over $240 billion, based on CoinGecko data.
Stablecoins are designed to remain at a steady value, unlike more volatile cryptocurrencies, making them useful for daily transactions. By regulating how these coins are issued and backed, lawmakers hope to provide consumer protection and financial stability.
If the law is enacted, both banks and non-banks could issue stablecoins under the new rules. The bill awaits further debate and a potential vote, which could see amendments added if an agreement is reached between both parties.
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