US Senate Legislation on Stablecoins
A new piece of legislation aimed at regulating stablecoins is set to be discussed in the US Senate, with crypto advocacy organizations urging lawmakers to prioritize its passage. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act has garnered enough support for a potential nod from the Senate, possibly as early as this week, following a procedural advancement on May 19.
Support from Cryptocurrency Organizations
Major groups in the cryptocurrency sector, including the Blockchain Association, the Crypto Council for Innovation, the Digital Chamber, and the DeFi Education Fund, have expressed their readiness to help sustain the current momentum toward a successful vote in the House. In a joint statement issued on June 2, these organizations emphasized the importance of staying true to the bill’s primary objective: establishing a focused and comprehensive framework for stablecoin regulation.
Challenges and Complications
After initially withdrawing their support, several Democratic senators have re-engaged with the bill amidst earlier concerns regarding President Donald Trump’s associations with the crypto world, specifically in light of his family launching their own stablecoin. Nevertheless, the legislation now faces potential complications from unrelated proposals, particularly an amendment concerning credit card transaction fees.
Proposed Amendments
Senators Dick Durbin and Roger Marshall are advocating for the inclusion of their Credit Card Competition Act (CCCA) into the stablecoin legislation, which would compel major payment processors such as Visa, Mastercard, and American Express to become more competitive regarding fees imposed on merchants. This proposed amendment has encountered significant backlash from financial institutions and credit card companies, who argue it is an overreach of government authority.
Concerns from Crypto Supporters
Crypto supporters are increasingly anxious about the risk these unrelated amendments pose to their long-awaited legislative win. James Czerniawski from the libertarian organization Americans for Prosperity criticized the proposed changes last month as
“unacceptable,”
contending that they threaten access to credit for American citizens.
Expanding List of Amendments
Furthermore, the list of suggested amendments continues to grow. Reports from crypto journalist Eleanor Terrett on June 2 indicate proposals such as mandatory disclosures for government officials holding stablecoins, restrictions on any crypto ties to the Trump family, prohibitions on foreign ownership of stablecoin issuers, and revisions to the Bank Secrecy Act and Anti-Money Laundering regulations. If an agreement is not reached soon, procedural delays could push the timeline for finalization into the week of June 9, complicating the already delicate negotiation process.
