Call for Stablecoin Legislation
In a pressing appeal made through X, Brad Garlinghouse, the CEO of Ripple, has emphasized the urgent need for U.S. lawmakers to enact definitive legislation concerning stablecoins. He pointed out that establishing comprehensive and clear regulatory standards will enable the U.S. to quickly capitalize on the advantages this technological advancement offers. Garlinghouse remarked on the global surge in stablecoins, citing numerous announcements in both the crypto and traditional finance sectors.
Challenges in Advancing the GENIUS Act
However, efforts to advance the GENIUS Act, a legislative proposal designed to provide a structured regulatory approach for stablecoins, stumbled recently in the Senate. On Thursday, the bill did not pass a significant procedural step, which was necessary for it to move forward to a full Senate vote. Arizona Senator Ruben Gallego indicated that the Democrats lacked sufficient time to review the amendments presented, leading to inadequate support for the bill to overcome the cloture vote. Some Republican senators, including Rand Paul, also expressed their dissent against the legislation.
Looking Ahead
Looking forward, there are expectations of a revised version of the stablecoin bill being revisited by senators in the upcoming week. Treasury Secretary Scott Bessent has highlighted the importance of the bill, describing it as a “once-in-a-generation opportunity” to reinforce the U.S. dollar’s global standing. He also cautioned that a lack of action on cryptocurrency innovation might drive such developments to foreign markets. Galaxy Digital’s CEO, Mike Novogratz, echoed the call for bipartisan support on this legislation, stressing its critical timing for the U.S. financial landscape.
