Crypto Bill: A Battle Brewing in the Senate

A hot debate is unfolding in the Senate over a crypto bill. The Guiding and Establishing National Innovation for U. S. Stablecoins Act, or GENIUS Act, is on the brink of passing. This bill aims to set rules for stablecoins, a type of digital currency with a steady value. It's backed by the crypto industry and has some Democratic support. However, the road to passage hasn't been smooth. Initially, the bill seemed set to sail through, but it hit a snag when Democrats changed their minds. They were concerned about the president's involvement in crypto, which they saw as a conflict of interest. The bill's supporters tweaked the language and are now pushing for a vote this week. Progressive groups are fighting hard against the GENIUS Act. They're circulating petitions and urging senators to vote no. Their main concern? The bill doesn't address the president's potential conflicts of interest. Stablecoins are tied to the value of another asset, like the dollar. This makes them useful for transactions. The GENIUS Act would set rules for the reserves that stablecoin issuers must hold. This is to prevent a repeat of the 2022 Terra stablecoin collapse. The bill's impact goes beyond stablecoins. Both supporters and opponents see it as a step towards integrating crypto into the U. S. financial system. This could reward the industry's political investments. Senator Elizabeth Warren is leading the opposition. She argues that voting for the bill is a vote for the president's alleged corruption. Warren's office notes that the latest draft still lacks language preventing the president from profiting off crypto while in office. The GENIUS Act has other critics too. Some argue it could give big tech companies too much economic power. Senator Josh Hawley voted against the bill for this reason. Despite the opposition, the bill can't pass without Democratic support. Senators Ruben Gallego, Kirsten Gillibrand, Angela Alsobrooks, and Mark Warner have been involved in negotiations with Republicans on changes to the legislation. The outcome of these talks could shape the future of crypto in the U. S.