Senate Takes Major Steps Toward U.S. Crypto Regulation
The U.S. Senate is taking big steps toward regulating cryptocurrency. They recently passed a bill called the GENIUS Act. This bill focuses a lot on the payment stablecoin. Now that the bill is headed to the House of Representatives, focus in the Senate is turning to a holistic market structure for digital assets.
Senate Hearing Scheduled with Top Industry Experts
On Tuesday, a Senate Banking Committee‘s digital assets subcommittee hearing on drafting bipartisan legislation for the crypto industry will take place. Legal experts, including Ryan VanGrack, Greg Xethalis, and Sarah Hammer, from Coinbase, Multicoin Capital, and the University of Pennsylvania Wharton School, respectively, are to testify.
GENIUS Act Passes with Bipartisan Senate Vote
The Senate’s first major step toward establishing more comprehensive rules since the June 17 GENIUS Act has seen prominent bipartisan support with a 68–30 vote. This hearing will be a good initiating point for this. The bill, which clarifies the use of U.S. dollar-backed stablecoins, is presently being considered in the House, where it could be amended.
House Pushes Forward with CLARITY Act
On the other hand, the House of Representatives is moving forward. Just a couple of weeks ago, the House Agriculture Committee and House Financial Services Committee advanced the Digital Asset Market Clarity (CLARITY) Act to define the roles of key financial regulators in the crypto market. The bill is expected to move to a full House vote soon.
Senate Considers Options for Next Legislative Move
The Senate is not yet sure whether it will write a companion bill to the CLARITY Act or whether it will fold any part of the House bill into the Senate bill. Senator Cynthia Lummis, who is leading the effort on digital assets, isn’t saying what might be next for the committee.
Industry Seeks Regulatory Clarity and Investor Protection
The crypto experts say such moves, involving stablecoin and larger market structure, will help remove the ongoing regulatory uncertainty surrounding the U.S. crypto ecosystem. The leaders in the industry have always sought clarity of rules and predictable regulation for innovation and protection of investors.
Political Concerns and Controversy Emerge
However, the legislation is not without controversy. Some congressional Democrats question whether former President Donald Trump and his connections to memecoins, World Liberty Financial, and political donations from crypto executives have potential conflicts of interest.
Trump recently said he would sign the GENIUS Act without changes if it moves to the House quickly. His crypto legislation efforts come at a delicate moment, as he is being questioned for the military strikes in Iran, which were not approved by Congress.
A Turning Point in U.S. Crypto Legislation
The GENIUS Act and the pending market structure framework together represent a significant change in how the U.S. could regulate digital assets in the future. As legislators continue to weigh the future of crypto, these bills could create a new environment for financial innovation and stability.
