Stablecoin The legislation is on its way to the US Senate floor for the first time, despite some senators’ concern that the bill they just advanced contains significant legal loopholes.
Late May 19, the US Senate voted 66-32 to invoke the globe on Guiding and establishing national innovation for us Stablecoins (Genius) lawaimed at regulating so -called “Payment Stablecoins.” Voting marks a historical step that will for the first time send Stablecoin legislation to the Senate floor for a final vote.
The transition to invoke Cloture required 60 ‘Aye’ votes, an obstacle that genius failed to clear A similar voice May 8th. That vote saw that Geni would get 49 ‘Aye’s votes, just one more than those who opposed. The ranks for the opposite included the Senate majority leader John Thune (R-D), who later said he voted ‘Nay’ to go through the process after further party syringe.
After the backlash, the two parties behind closed doors mostly moved to create a version of genius that could get the 60 votes needed to move on. While the resulting tweaks gathered the approval of some important dems that previously voted ‘Nay’, those who remained opposite regarded these audits as largely cosmeticSeemingly intended to give NaySayer’s coverage to change votes this time.
It did not hurt that the Pro-Crypto lobby group stands with Crypto (SWC), funded by Coin base (Nasdaq: Coins) exchange, issued a not so loose threat on Monday morning, Tweeting that “SWC will receive this voice as a key vote.” This means how senators vote if genius would affect their SWC’s results card, aka designation that determines whether they are pro- or anticrypto (with potentially Serious repercussions For those in the latter camp, the election 2026 comes the middle of the election).
As crypto in America reporter Eleanor Terrett noted After Monday’s vote, “All candidates such as (Pro-Crypto Political Action Committee) Fairshake Supported in the election “voted” Aye “on Monday.
Earlier Monday, Politician Reported that the plan was to vote to promote the revised version of genius, which enabled a certain opportunity for further debate on the Senate floor. But since the upcoming floor vote only requires a simple majority – as GOP already has – DEMS that flipped its votes from last time has effectively handed over its negotiating power before the purchase has been sealed.
In any case, brilliant supporters in the Senate are not planning to wait long for a floor vote, which can come as early as Tuesday but almost certainly comes before the Memorial Day holiday (May 26). Assuming that the floor vote traces a similar friendly road, the bill would then go to the House of Representatives, which has its own StableCoin bill (STABLE) in the works.
What is new
One of the most important sticks from the original genius was its thumb-up for large technical companies to issue their own Stablecoins. A Summary of changes In The Revised Genius Shows The Dealmakers Papers Papers Over This Crack By Requiring “Non-Financial Publicly Traded Companies” to Receive Approval from a New StableCoin Certification Review Committee (SCRC)-Compriced of the Treasury Department, The Federal Reserve .
Given (a) the current administration’s wholesaler of all things crypto, (b) to what extent large technology companies have brought themselves with the administration, and (C) abandonment of almost all crypto -enforcement Of supervisory authorities, it is difficult to believe that this committee would prove something more than a low level speedbump for the stable issuers.
Big Tech Stable-Ossuers would be prohibited from using their customers’ Stablecoin transaction data to target the said customers for other campaigns and from selling this information to third parties. However, these prohibitions would be made if customers click on “okay” to an updated service message, who, as we all know, few customers will actually read. So again, it’s not much of a railing.
It doesn’t seem to be any ban on private Technical companies that issue their own Stablecoins. On one Senate Bank Committee Democratic Personnel Analysis Of the revised genius, Elon Musk’s X (formerly Twitter) is designated as an example of a private company that is primarily involved in financial activities that can benefit from this loopholes.
In the case of “foreign” stable issuers as Tether (USDT), Genius previously allowed them more or less free reign to work in the United States, provided they could claim registration in a country that is considered to have “comparable” rules such as America. The revised genius would require SCRC to approve this “comparable” designation rather than leave it up to the only space for Treasury Secretary (and Crypto Fan) Scott Bessent.
Foreign issuers could also not be based in a country under the US financial sanctions or a jurisdiction that is considered “primary money laundering concern.” And while foreign released Stablecoins would be prevented from trade in centralized exchanges (CEX), no such ban on decentralized exchanges (Dex) applies.
Dems shared on how to handle Trump’s digital asset company
Last week, Senator Elizabeth Warren (D-Ma) issued Her own criticism Of the revised genius that largely focused on the lack of limitations that put on crypto activities for President Donald Trump and his family. These include USD1 Stablecoin issued by Trump-controlled Decentralized funding (Defi) Project World freedom economic (WLF).
Warren claimed that the brilliant loopholes will enable Trump to “functionally regulate his own stablecoin”, given his previous executive claims “direct control over independent financial supervisory authorities.”
On May 19 Warren repeated her objections on the Senate floor and says that the revised genius’s “basic deficiencies remain unaddressed.” Warren said she would welcome a bill that strengthened Stablecoin surveillance, but a bill such as “turbocharges Stablecoin market, while the president’s corruption facilitates and undermines national security, financial stability and consumer protection is inferior to no bill at all.”
Warren’s colleague Mark Warner (D-va) voted ‘Aye’ on Monday and released A statement before voting Calling the revised genius “Not perfect, but it’s much better than the status quo.” Warner added that “blockchain technology is here to stop. If American legislators do not shape it, others come – and not in ways that serve our interests or democratic values.”
Warner, however, acknowledged his “very real concern about the Trump family’s use of crypto technologies to avoid monitoring, hiding shady economic business and personally serving at the expense of everyday Americans.” Warner added that the senators have “an obligation to shine a light on these abuses and prevent Donald Trump from exploiting new techniques to enrich himself, avoid liability and weaken the safeguard measures that protect American consumers and the rule of law.”
Prior to Monday’s vote, Senator Michael Bennett (D-Co) introduced a bill to impose the type of restrictions on Trump’s crypto companies that Geni lacks. Cheeky with the title Stop trading assets that benefit the legislator’s revenue while controlling exotic and new investments for US law (stable genius)The bill would prohibit “elected officials and federal candidates from issuing or approving digital assets and at the same time preventing officials from making legislative or political decisions affected by the digital assets they have.” There is exactly zero chance to pass, so let it be the last thing we hear about it.
Justin Sunfounder of Throne Blockchain started recently Tweeting Cut by himself who visit us landmarks, which strongly indicates that he will participate at Thursday’s dinner for the 220 best holders of President Trumps $ Trump Memecoin. The controversial Competition to get an invitation to the “gala” dinner At Trump National Golf Club closed last week, with the upper wallet identified only by the name ‘Sun.’
Technically, the “Sun” wallet is associated with the Seychelles-based Cooperative (before Huobi) Exchange, which has long been rumored to be under Sun’s control (although Sun denies this). Sun is also a WLF adviser, a time he secured after spending $ 75 million to buy WLF’s control token WLFI.
Media will not be welcome at Thursday’s gala dinner, so we have to wait for participants (or maybe the president himself) to feed dirt on who participated and what they were talking about.
Sen Blumenthal Slam’s WLF Request Answer
Return to WLF for a moment, earlier this month, Senator Richard Blumenthal (D-CT), the ranked member of the Senate’s Permanent Sub-Committee for Investigations, opened a preliminary investigation to $ Trump, WLF and the president’s “other associated business company.”
Blumenthal said he “sought answers” from WLF founder Zach Witkoff “about how the president can violate the law and use the federal government’s enormous power to enrich the company, its foreign business partners and others in the Cryptocurrency industry.”
May 15 Zach Witkoff Tweetad A copy of a letter his lawyers had sent in response. Witkoff’s letter claimed Blumenthal’s letter to Witkoff contained “errors and basic erroneous conclusions”, while claiming that WLF has “no connection, formal or informal” to the devices responsible for issuing $ Trump.
While declining to deal with many of Blumenthal’s questions, the tangled letter said that WLF “rejects the false choice between innovation and supervision” and “opposes” “” abuse of supervisory authority and uncertainty to suppress legal innovation. “
Blumenthal told The block That he found Witkoff’s response “seriously insufficient” and said that WLF’s “refusal to answer even the most basic questions about President Trump’s financial intrase with the company raises serious concern, and I will continue to demand transparency for the American people.”
Does not require it to be. Just say.
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