Senator Josh Hawley Challenges the GENIUS Act
Missouri’s Republican Senator Josh Hawley is challenging the White House-backed GENIUS Act, a proposed legislation centered around stablecoins. Hawley has expressed significant reservations, labeling the bill as a major concession to large technology companies.
“It’s essentially a big giveaway to Big Tech,”
he stated, arguing that the legislation would unconditionally permit these firms to create stablecoins with minimal oversight.
Concerns About Tech Influence in Finance
Hawley’s concerns echo broader fears regarding the influence of tech giants in the financial sector. He has been vocal about advocating for revisions to the proposed bill to limit Big Tech’s involvement in stablecoin issuance.
The GENIUS Act, which stands for “Guiding and Establishing National Innovation for US Stablecoins”, aims to provide enhanced consumer protections, transparency, and a regulatory framework for the rapidly expanding $250 billion stablecoin market.
Market Developments and Implications
The act is significant enough that it could disrupt the credit card industry and has implications for high-profile figures like Donald Trump and Elon Musk, who are currently engaged in a public spat.
Recently, the stablecoin market witnessed notable developments as Circle, the second-largest issuer of US-dollar pegged stablecoins, announced its initial public offering (IPO). The company, which issues the USDC stablecoin, went public on the New York Stock Exchange under the ticker CRCL, with shares opening at $69, marking a 168.48% increase from its IPO price of $31 per share.
This surge demonstrates the growing investment interest in cryptocurrency and fintech services, underscoring the stakes involved in legislative discussions like those surrounding the GENIUS Act.
