American lawmakers' progress stalls on GENIUS Act - 'Onlookers globally watch as US legislators hesitate'
Rewritten Article:
Title: Stablecoins Regulation Bill Faces Setback: GENIUS Act Falls Short in Senate Vote
Hold on tight as the GENIUS Act, an ambitious attempt to regulate stablecoins in the U.S., faces a brutal defeat in the Senate. Despite intense negotiations and political heat, the bill could not secure the necessary 60 votes, with a narrow 48-49 split and three abstentions. Key democratic supporters allegedly pulled out their backing over the weekend, leaving the legislation's future uncertain.
Treasury Secretary Janet Yellen didn't mince words, stating, "The world is waiting with bated breath while U.S. lawmakers dilly-dally. Senators voting to stall American ingenuity today face a straightforward choice: ride the wave or watch digital asset innovation drift away."
This development comes on the heels of a heated debate over stablecoin regulation in the U.S., which reached its boiling point yesterday.
Red vs Blue
Senators Elizabeth Warren and Jeff Merkley have been firebrands against the bill, calling it the gateway to Trump's 'crypto cartel'. Warren, in particular, railed against potential conflicts of interest between the legislation and Trump's USD1 stablecoin. She accused Trump of manipulating public policy to amass illicit profits.
Her claims grew louder after the news of a $2 billion deal between Trump-linked World Liberty Financial (WLFI) and Binance. The deal is bankrolled by capital from an Abu Dhabi-based conglomerate.
Jonathan Jachym, Kraken Global Head of Policy and Government Relations, weighed in, "Other major economies are ahead of the game in setting clear rules for stablecoins and intermediaries. It is crucial that U.S. lawmakers join forces in the coming months to finalize stablecoin and market structure bills before August."
A bipartisan initiative, initially favored by the Senate Banking Committee with an 18-6 vote, has now turned into a powder keg of controversy. Riding this wave of doubt, USD1 recently soared past the $1 billion market cap, with a significant chunk minted in a single hour, raising further questions about the tangled web of political influence and private crypto schemes.
Senator Bernie Sanders warned, "The GENIUS Act threatens consumer protection, empowers criminal actors, and allows the Trump family to rake in millions from crypto ventures."
Did you know?- GENIUS Act's Key Provisions: The Act proposes a regulatory framework for stablecoin issuers, providing options for both state and federal regulation based on the scale of the issuer. Stablecoin issuers must meet stringent operational standards, comply with Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) regulations, and maintain sufficient capital and liquidity.
- Mixed Opinions: While some argue that the Act is beneficial for creating a regulated environment, others fear its impact on smaller banks and community banks in the face of competition from tech giants entering the stablecoin market. The debate surrounding the GENIUS Act reflects broader discussions about striking a balance between innovation and oversight in the fast-evolving stablecoin sector.
- The crypto market watched with bated breath as the GENIUS Act, a bill aiming to regulate stablecoins in the U.S., faced a devastating defeat in the Senate.
- Senators Elizabeth Warren and Jeff Merkley, vocal opponents of the bill, accused it of being a gateway to a potential 'crypto cartel' and Trump's USD1 stablecoin.
- Jonathan Jachym, Kraken's Global Head of Policy and Government Relations, urged U.S. lawmakers to collaborate on stablecoin regulation and market structure bills before August, stressing the need to keep up with global trends.
- As the GENIUS Act faces opposition, USDT, a stablecoin, surged past the $1 billion market cap, with a considerable amount minted within an hour, raising concerns about political influence and private crypto schemes.
- Senator Bernie Sanders cautioned that the Act could lead to consumer protection issues, criminal empowerment, and financial gains for the Trump family in crypto ventures.
- The GENIUS Act proposes a regulatory framework for stablecoin issuers, with stringent operational standards, AML/BSA compliance, and capital/liquidity requirements, sparking debate about balancing innovation and oversight in the fast-evolving stablecoin sector.
