JA few months ago, the cryptography industry seemed unstoppable in Washington. He had the support of a Pro-Crypto president in Donald Trump, a series of new Pro-Crypto legislators in both parties, and newly high regulators who is committed not to hinder industry growth. Many have assumed the rapid adoption of Pro-Crypto legislation as a fatal conclusion after Trump request The congress sends him a stable bill to sign by August.
This momentum has achieved a major problem in recent days, because Trump's growing investment in the industry coincides with a revolt on the part of the Democrats who had previously supported the main cryptographic legislation.
Tuesday, the representative of California Maxine Waters, the classification democrat The Chamber's Financial Services Committee opposed an audience on the crypto, actually preventing it from taking place and called for legislation which would prohibit the presidents and members of the Congress from having assets and cryptographic companies. Trump's family has and operates World Liberty Financial, who made his debut this week Pulled in the top ten stablecoins by market capitalization.
In the Senate, a group of nine democrats announcement They would not support a stable bill, called the law on engineering, without major changes, considerably narrowing its career around 60 votes. Meanwhile, the staff of the Senate Banking Committee and the Senator of Massachusetts Elizabeth Warren, the committee's classification democrat, have disseminated a note to her colleagues Democrats du Senate exhorting them to require changes that could respond to the national security problems of the bill.
“If the Congress will overcome the use of stabbed and other cryptocurrencies, it must include guarantees that make more difficult for criminals, terrorists and foreign opponents to exploit the financial system and put our national security in danger,” said the memo, which was obtained by time.
The Genius Act is still directed to a vote in the Senate Thursday, Politico reported. Leader of the majority of the Senate John Thune said It was open to making changes to achieve a compromise that responds to the concerns of Democrats. Here are some of the main objections to the bill and how the fight can take place this week.
Interests
Stablecoins are cryptocurrencies designed to maintain the value of an American dollar. For many legislators on both sides of the aisle, the passage of a bill on stables seemed more feasible this year than to tackle a larger bill on the structure of the cryptography market, in particular because the stablées are less volatile and that their value is generally linked to real money in a bank.
Find out more: What are Stablecoins?
But in March, the world of Trump, Liberty Financial announced a new stablecoin, which made fear that the new legislation essentially gives Trump even more surveillance on its own financial product. (In February, Trump published a executive decree Place independent financial regulators such as the FTC, the FCC and the dry under its control.)
Trump only degenerated his cryptographic relationships. Last week, World Liberty Financial announcement That an Emirati company planned to use the company's new stablecoin for an investment of $ 2 billion in Binance, the largest cryptocurrency exchange in the world. Trump has also announced that he would organize an exclusive dinner for the best investors in his play even $ Trump – that republican senator Cynthia Lummis du Wyoming, a Fide, supporter of Trump and defender of cryptocurrencies, admitted “gave [her] break.”
Waters has been working on Stablecoin's legislation for years. But last month, she reversed the course, say that She opposed any bill that would allow Trump to have a stablecoin. Tuesday, she left a joint house hearing on Crypto, later To say: “I am deeply worried that the Republicans are not only aware of Trump's corruption. They legitimize the efforts of Trump and his family to get rich on the back of the average Americans.”
Waters then organized its own audience on Stablecoins. However, several Democrats have remained at the initial hearing, notably the representative Stephen Lynch of Massachusetts, the classification member of a subcommittee focused on digital assets, and the representative Angie Craig of Minnesota. “This is a really important conversation. I am here because I think we have to commit, and part of the discussion,” said Craig.
Craig, however, agreed that Waters raised important questions. “It is important and it is legitimate to call the auto-dalling of the Trump administration linked to the Hawking Mesmes of the White House,” she said. “It's corrupt, it's bad, and it makes this process to come together to regulate the more partisan crypto.”
National security concerns
While some Democrats focus on the preventing Trump from having a stablecoin while he is in office, others are concerned about the current Stablecoin bills in Congress could have unexpected consequences. Warren, which has long been skeptical cryptographic, has particularly perfected the training effects on national security, arguing that the bill would facilitate terrorists and the actors of the malicious state to steal and withdraw illicit funds.
In February, the pirates supported by the North Korean government stole $ 1.5 billion in cryptocurrencies to the bladder of the exchange of crypto, as part of a Greater continuous effort To steal crypto funds from around the world. Bybit's hacking was the biggest in the history of crypto – and foreign policy experts Believe that stolen funds are used to finance the development of nuclear missile and weapons technology.
The staff members of Warren and the banking committees therefore distributed a service note on Monday, which calls for changes to the Act on Engineering, including the implementation of strict anti-whitewarming requirements on exchanges on digital asset scholarships. He argues that the bill should extend the laws on American sanctions to Stablecoins and that stablecoin issuers should be required to monitor blockchains and report criminal activity.
The nine Democrats who have revoked their support for the Act on Engineering now have a significant lever effect on the bill. It is not clear that the bill changes would be enough to regain their support. “We have been very clear for our Republican colleagues for weeks on the changes we need,” said Virginie Mark Warner, one of these nine Democrats on Tuesday.
The Senator of Arizona Ruben Gallego, who directed the Declaration of Democrats opposing the bill, told Time that his priorities reinforced consumer protections and national security issues. “We can tighten the question” who can issue, what the country can issue “,” he says. “It is incredibly important when it comes to closing some of the loopholes attached.”
Democratic Senator Angela Alsobrooks from Maryland, the bill of the bill, told Time that she thought that the bill should require cryptographic companies dealing with stablescoins to adopt anti-flange rules (AML) and also funding terrorism (CFL). “We still have a little time, but everyone is motivated, and we are all working together to try to go to the best place possible,” she said. “We want to make sure that all national security concerns are dealt with.”
The republican senator Bill Hagerty du Tennessee, one of the authors of the bill, was not unmistless by the challenges. “I am beyond the optimist. I am convinced that it will pass,” he told Time.
The independent senator of Vermont, Bernie Sanders, announced that he would organize a live flow on Wednesday with other criticisms of the genius law to discuss how he “threatens the stability of our financial system”.
The cryptography industry continues to put pressure for the adoption of the bill. Dante disappears, A leader at The circle of stablecoin issuers says the time that more damage comes from the absence of legislation. “The defects spent adopting the bipartite legislation of stablecoin have harmed consumers, markets, national security and the competitiveness of the dollar,” he wrote in an email, citing the failure of the foreign project of the stable project on a terra-Luna in 2022.
