Legislative Developments in Cryptocurrency Regulation
French Hill, the head of the Digital Assets Subcommittee, has emphasized the interdependence of stablecoin legislation and market structure regulations, suggesting that both are critical for ensuring adequate protections within the cryptocurrency sector.
Recently, the U.S. Senate gave a significant nod to the GENIUS Act, a bipartisan initiative designed to oversee stablecoins at the federal level. Ripple’s CEO, Brad Garlinghouse, has hailed this legislation as potentially the most consequential financial reform since the Dodd-Frank Act, which was enacted in 2010. Following the Senate’s approval of the GENIUS Act, stocks of several crypto firms, including Circle, surged, with many witnessing double-digit increases.
House of Representatives Initiatives
In conjunction with the Senate’s actions, the House of Representatives is also working on similar legislation, known as the STABLE Act, aimed at regulating stablecoins. There are ongoing discussions to possibly integrate the STABLE Act with the CLARITY Act, which aims to establish comprehensive guidelines for cryptocurrency exchanges, digital wallets, and token classifications. This strategic move could help maintain legislative momentum after the Senate’s recent steps.
The House is gearing up for votes on both the STABLE Act and the CLARITY Act in the near future. Republican lawmakers supportive of cryptocurrency hope to pass these bills before the upcoming August recess, although their ability to garner sufficient bipartisan support remains uncertain. However, the merger of these two pieces of legislation could introduce complexities in negotiations with Democratic lawmakers, raising the possibility of further delays, potentially pushing any votes into next year.
