For the future of encryption regulation, the US Senate Banking Committee has recently developed the national guidance and innovation law of the United States of Stablecoins in the United States, known as the genius law, by voting out of 18-6.
Under the sponsorship of Senator Bell Hajariti (R-ENN) Transactions Globally, it is accessible to anyone with a smartphone.
However, the draft law sparked an intense debate, especially from Senator Elizabeth Warren (D-Mass), which was an audio critic of the potential risks associated with such legislation.
Tension appears with the progress of Stablecoin
In his opening statements during the Senate Banking Committee mark, Senator Hajari Assure The need for organizational clarity, saying: “With the world updating its payment systems, the United States cannot be left behind. Stablecoins can play a pivotal role in stimulating this update.”
The Senator also highlighted the potential benefits of a clear organizational framework in the country, including improving the efficiency of transactions and increasing demand for US treasury papers.
On the other hand Express Fears that the draft law does not protect consumers, taxpayers adequately, or the wider economy in the event of Stablecoin failure.
“This draft law pleads with more rescue operations,” she said, with a highlight of her belief that it could unintentionally lead to rescue operations funded by taxpayers for failed Stablecoin exporters.
Warren also criticized legislation To enable alleged technical billionaires such as Elon Musk and Mark Zuckerberg to launch their distinctive symbols on the basis of the dollar, raising fears of the concentration of financial strength in the hands of a few individuals.
Despite Warren’s objections, Hajari argues that the genius law includes adequate protection and organizational measures to deter criminal activity. Supporters emphasize that the legislation requires stablecoins to be supported by individual backup assets, which will be monitored by the organizers.
The next obstacles in obtaining the approval of the full Senate
The genius law provides many major provisions aimed at organizing Stablecoin. It determines the requirements for licensing and control, and dictates that Stablecoin exporters with a Market value Less than 10 billion dollars will be organized at the state level, while adult exporters will fall under the Federal Reserve and the Currency Observer Office (OCC).
Regarding transparency, the draft law imposes that exporters submit monthly liquidity reports and maintain full transparency regarding their reserve structures, ensuring that Stablecoins is supported through reserves kept in US dollars or liquid assets high on the basis of 1: 1.
In addition, the legislation requires that exporters meet the applications of recovery immediately, grant the federal reserve and power to suspend licenses or impose sanctions on non -compliance. It also focuses on the fight against money laundering (AML) and Learn about your customer (KYC) criteria to prevent misuse of illegal activities.
The draft law received support from various stakeholders, including Democrats in New York Kirsten Gilbrand and Democrats in Maryland Angela Alelosoprus, who support legislation despite being outside the committee.
Treasury Secretary Scott Beesen and Trump also views Stablecoins positively, where Bessent indicates that they can enhance global domination of the dollar by increasing demand for the American currency.
While the approval of the genius law in the Senate Banking Committee represents a pivotal moment in the American encryption policy, the draft law faces the upcoming challenges. It will require at least 60 votes to progress in the Senate, which requires the continuation of the two parties.
Distinctive image from Dall-E, Chart from TradingView.com
Editing process For Bitcoinist, it is focused on providing accurate, accurate and non -biased content. We support strict resource standards, and each page is subject to a diligent review by our team of senior technology experts and experienced editors. This process guarantees the integrity of our content, importance and value of our readers.
adxpro.online