US Senate crashes stablecoin hopes as GENIUS Act gets shot down
The post US Senate crashes stablecoin hopes as GENIUS Act gets shot down appeared on BitcoinEthereumNews.com.
On May 8, the United States Senate failed to push forward the long-anticipated GENIUS Act, which would create clear rules for stablecoins. The bill, which had bipartisan support, was critical in giving the U.S. a strong foothold in digital asset regulation. In a vote on Thursday, only 49 senators voted to advance the bill to a full vote, falling short of the 60 votes needed to end debate on the bill formally. Notably, two Republican senators – Senator Josh Hawley and Senator Rand Paul – voted alongside Democrats against moving forward with the bill. Democrats, who had once supported the GENIUS Act, withdrew their support after media reports connected President Donald Trump to a new cryptocurrency project. A company believed to be linked to Trump’s family, World Liberty Financial, had introduced its stablecoin two months earlier, USD1, and netted a $2 billion investment from the United Arab Emirates. This raised red flags. Democrats charged that Trump was shaping public policy to his financial benefit. Senator Elizabeth Warren, a leading voice on the Senate Banking Committee, said the GENIUS Act — which was approved last week — failed to have serious safeguards to guard against money laundering, foreign interference, and conflicts of interest. She believes the bill would clear the way for what she called “crypto corruption” and that it could be used to hide corrupt financial practices in the name of innovation. Ten Democratic senators previously in support of the bill switched their votes. They called for more stringent anti-money laundering rules and national security protections. They cast their votes against moving the bill forward when those changes could not be promised to them. Republicans blame democrats for derailing stablecoin bill Republicans were quick to seize on the Democrats’ reversal. Senator Tim Scott, a senior member of the Banking Committee,…
