As the cryptocurrency industry approaches its first major legal victory, the debate over stablecoin regulation in the US Congress intensifies. The GENIUS bill has become a focal point for discussion.
Criticism of the GENIUS Bill
Democrats on the Senate Banking Committee have criticized the final version of the GENIUS bill. The committee staff report claimed the bill could pave the way for 'Trump crypto corruption' and risk giving digital currencies undue influence over Big Tech. They called for additional amendments to address outstanding issues in the bill.
Key Provisions of the Bill
The bill includes significant requirements for stablecoin issuers. According to the bill, stablecoins must be backed by fully liquid and secure assets, such as treasury bonds. It also requires compliance with anti-money laundering and anti-terrorist financing rules, ensuring that investors are considered priority creditors in the event of a potential bankruptcy.
Expectations for the Vote
The bill is expected to be approved by 60 senators. It was initially anticipated to pass easily with bipartisan support, but recent regulatory changes have raised concerns among some Democrats, including Elizabeth Warren and Maxine Waters, who express caution regarding the impact of the crypto sector.
Amid increasing pressure on the GENIUS bill, further discussions and amendments may significantly influence the future regulation of stablecoins in the US.
