This week, the US Senate failed to advance to a major billing regulation of Stablecoin called guiding and establishing the National Innovation for the US Stablecoins Act (Genius Act).
On May 8, Democrat lawmakers were united to prevent the bill, as 49 of them voted against the promotion of the law, while 48 Republican senators supported it.
Bipartisan supports fractures while democratic major
Interestingly, many Democrats backed or sponsored the Genius Act-including Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Andy Kim, Kirsten Gillibrand, and Angela Alsobrooks-against it.
It marks a surprise, considering the bill that has previously gained support for the Bipartisan legislative legislative.
Gallego and some colleagues defended their move to a joint statement, saying the proposal had no critical care.
According to them, the bill will need to include stronger language in anti-money laundering, more stable administration of foreign stablecoin that provided, and clearer implementation tools to ensure compliance.
They also mentioned national security concerns and the stability of the broader financial system in their unresolved issues.
“We acknowledge that the lack of regulation leaves consumers who are unprotected and vulnerable to predatory practices. We approach this process properly and with open -mindedness, with the understanding that further improvements in the bill will be made,” the lawmakers Nakasa said.
However, Republican lawmakers like Pete Ricketts Punato The outcome of the vote, accusing Democrats to prioritize political interests in the development of the policy.
Bo Hines, executive director of the president of the council of counselor in Digital Assets, argued that Senate Democrats had missed a chance to make smart reforms to boost change and secure the US as a financial technology leader.
“Ang panukalang batas na ito ay hindi tungkol sa politika-ito ay tungkol sa pagbuo ng hinaharap. Ito ay tungkol sa pag-modernize ng aming mga lipas na mga sistema ng pagbabayad, at pag-secure ng aming posisyon bilang pandaigdigang pamantayang pang-pinansiyal sa teknolohiyang pinansyal. Sa halip, ang mga Demokratiko ay nakipag-ugnay sa mga paksyon ng ideolohikal na paksyon, na tinalikuran ang pagkakataon na magdala ng kalinawan sa merkado at magsagawa ng makabagong ideya of American, “Hines write In X.
Meanwhile, Matt Hougan, chief investment officer at Bitwise, called the outcome “deeply poor.” He warned that the absence of clear regulations could be stablecoin adoption and suppress market growth, especially for altcoins.
Hougan also noted that a regulation that stalemate could lead to increased volatility throughout the non-Bitcoin properties this summer.
“If Stablecoin and the market structure of the market stop DC, it would be a long summer for non-bitcoin crypto assets,” he mentioned.
Tether accepts the stablecoin -updated bill
Following the failed vote, a new update DRAFT of the Genius Act appeared with well -known changes.
The new draft is narrow on the list of sponsors to Republican senators Bill Hagerty, Cynthia Lummis, Tim Scott, and Dan Sullivan. Democrats Kristen Gillibrand and Angela Alsobrooks, who had previously supported the bill, were removed from the updated version.
The latest draft expands US jurisdiction to cover foreign stablecoins who have provided like Tether who serves American users. It refines the legal definitions of digital asset service providers and updates the types of properties that can return to Stablecoins.
These changes suggest a push for greater administration and more flexible reserve management.
Meanwhile, Tether CEO Paolo Ardoino responded positively to the changes in the bill. He said the company supports developing regulations and expects further engagement with US policies.
According to Ardoino, establishing a solid framework of regulation will help to secure the dominance of the US dollar in global markets.
“We recognize and appreciate the administration's hard work to support the legislative process of this technology of transformation … We expect the government's ongoing efforts to enact a way that promotes global dollar hegemony,” he Says.
Refusal
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