In a move that has raised eyebrows in some quarters, 16 Democratic senators joined most Republicans on Monday to advance a bill aimed at creating a regulatory framework for stablecoins, digital assets whose value is pegged to traditional currencies or commodities. The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, despite reservations about its impact on the crypto industry’s ties to President Donald Trump, passed a cloture vote, setting it up for Senate debate.
The bill was met with concerns from consumer groups and watchdogs in February, who warned that it would accelerate the convergence of Big Tech and Big Finance, paving the way for future giveaways to the crypto industry. In early May, some pro-crypto Democrats raised concerns about the bill’s lack of strong provisions on anti-money laundering, national security, and other issues.
However, proponents argue that revisions made to the bill address these concerns, including additional consumer protections and limitations on Big Tech’s ability to issue stablecoins. Despite this, Senator Elizabeth Warren (D-Mass.), the top Democrat on the Senate Committee on Banking, Housing, and Urban Affairs, expressed her reservations about the bill’s “basic flaws” remaining unaddressed.
Warren’s primary concern is that the bill does not adequately address President Trump’s ties to the crypto industry. The senator pointed out that Trump and his family have already pocketed hundreds of millions of dollars from their crypto ventures and stand to make even more if the bill passes, citing the example of USD1, a stablecoin developed by World Liberty Financial, a firm tied to the Trump family.
Warren also expressed concern about the bill’s regulatory framework, which she believes creates a relatively weak environment for oversight, allowing Big Tech to create private currencies and other issues. The senator’s concerns are echoed by Public Citizen co-president Lisa Gilbert, who stated that too many Democrats have yielded to unprecedented political spending by crypto corporations and billionaires in exchange for their support.
The bill’s passage has also raised questions about the role of election spending by the crypto industry on senators’ votes. In the last election cycle, several senators, including Elissa Slotkin (D-Mich.) and Ruben Gallego (D-Ariz.), received donations from crypto-industry supported super political action committees.
As the bill moves forward for Senate debate, it remains to be seen whether concerns about Trump’s ties to the crypto industry will ultimately influence its passage or whether other factors will take precedence. One thing is certain, however – the debate has brought attention to the complex interplay between politics and the rapidly evolving world of cryptocurrency.
Sourced from https://www.commondreams.org/
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