On July 1, 2025, the US Senate debated an amendment to the GENIUS Act proposed by Senator Jeff Merkley, aimed at reducing conflicts of interest in the cryptocurrency sector, which was ultimately rejected.
Merkley's Amendment to the GENIUS Act
The amendment proposed by Senator Jeff Merkley sought to prohibit U.S. officials from engaging in cryptocurrency dealings when conflicts of interest are present. Merkley emphasized the need for transparency and accountability among lawmakers, urging them to avoid crypto-related interests.
Opposition and Consequences
Merkley's proposal faced resistance, particularly from Senator Cynthia Lummis, who argued that such measures would undermine the advancements of the U.S. in digital assets. Lummis maintained that the restrictions could stifle innovation in the burgeoning field.
Regulatory Trends and Market Impact
Historically, similar initiatives, like Merkley's amendment, have raised transparency levels without triggering major cryptocurrency sell-offs, as evidenced by the STOCK Act. As of now, Bitcoin (BTC) is trading at $107,453.88, marking a 0.93% drop compared to the previous day.
The rejection of Merkley's amendment raises questions about how regulation might impact the accountability of public officials regarding cryptocurrencies. A careful approach to developing such legislation is becoming increasingly evident.
