Key Notes
- The GENIUS Act will need 60 Republicans and Democrats to vote in its favor before it can advance.
- Democrats have several concerns, including one about Donald Trump’s ties with the cryptocurrency industry.
- Optimism remains as the general crypto regulation landscape has improved.
Key stakeholders have begun to voice their support for The Guiding and Establishing National Innovation for US Stablecoins (GENIUS), the first-of-its-kind regulatory framework for payment stablecoins in the region.
GENIUS Act Needs 60 “Yes” Votes to Advance
As reported by Politico, lawmakers will commence the voting process for the landmark stablecoin GENIUS bill on Thursday, May 8.
This is irrespective of the growing resistance that the legislation continues to encounter from Democrats and divisions within the GOP. Senator Bill Hagerty (R-Tenn.) is leading the bill, which is co-sponsored by Chairman Tim Scott (R-S.C.) and Subcommittee on Digital Assets Chair Cynthia Lummis (R-Wyo.).
Based on the bill, stablecoins must be fully backed by the United States dollar and short-term Treasuries, including comparable liquid assets.
Key crypto industry players like Coinbase CEO Brian Armstrong are supporting the GENIUS bill. He also encouraged the House to build on the FIT21 framework to allow the Act to “pass comprehensive stablecoin legislation”.
According to a Politico report, Republican supporters of this bill are trying to address the growing concerns of their party members. At the same time, these Republicans are also seeking the support of some top Democrats, especially those who went all out to oppose the bill’s current iteration over the weekend.
These entities include Ruben Gallego, Lisa Blunt Rochester, Mark Warner, Catherine Cortez Masto, Raphael Warnock, Andy Kim, John Hickenlooper, Ben Ray Luján, and Adam Schiff.
Senate Majority Leader John Thune filed a procedure on May 6 for ending the debate about the GENIUS Act and taking a vote.
By all means, this filing has now moved the bill towards procedural voting that requires bipartisan support. For the GENIUS Act bill to be passed, it requires 60 “Yes” votes.
It is worth noting that Republicans currently hold 53 seats in the committee, so they will only need backing from a few Democrats. However, there is also a possibility that some Republicans will not give their “Yes” vote to the bill.
What Are Democrats Scared of?
Republican party member Sen. Rand Paul (R-Ky.) hinted at his likely opposition on Tuesday when he stated that the proposed regulations are unnecessary.
In like manner, Sen. Josh Hawley (R-Mo.) has been quite hesitant, pointing out the possible challenges due to the GENIUS bill. He cited that the bill could encourage influential tech companies to become stablecoin issuers.
In a plot twist, Sen. John Kennedy (R-La.), who had previously supported the bill in committee, has decided against it. He intends to withhold his support for the stablecoin bill.
At this time, Democrats’ resistance stems from a need for more robust safeguards on foreign stablecoin issuers and more comprehensive Anti-money Laundering (AML) provisions.
Meanwhile, Democrats are also concerned about President Donald Trump’s growing stance in the cryptocurrency ecosystem. A few days ago, US Senator Elizabeth Warren raised significant red flags about this matter, citing the recent $2 billion deal backed by the United Arab Emirates. She described this particular transaction as a pathway to huge corruption.
Consequently, Senator Warren requested that the US Senate block the crypto legislation and the GENIUS Act. Judging by the current state of this bill, some of the Senators may not have given any attention to her statement.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
