Federal lawmakers from New York and Connecticut want to regulate the cryptocurrency stablecoin. They have different ideas about what that should look like.
On Monday, the U.S. Senate advanced legislation to create the country’s first regulatory framework for stablecoins, which are digital currencies pegged to the value of a stable currency, like the U.S. dollar. The legislation is supported by the crypto industry.
Sen. Kirsten Gillibrand (D-NY), a former securities lawyer, is the lead Democratic co-sponsor of the bill.
“A product of months of bipartisan negotiations, the GENIUS Act will protect consumers, enable responsible innovation, and safeguard the dominance of the U.S. dollar,” Gillibrand said in a statement. “The bill takes aim at illicit finance, places limitations on Big Tech, puts in place ethical guardrails and defends national security.”
Monday’s vote was for cloture, which doesn’t pass the legislation out of the Senate. It limits debate on the bill and makes way for it to go to a final vote.
Sen. Chris Murphy (D-CT) voted against the bill, citing that it didn’t do anything to prevent President Donald Trump from profiting off his stablecoin, USD1. Murphy wants to add amendments to that extent, but Republicans control the Senate and are unlikely to advance them.
“The GENIUS Act exempts President Trump from the ethics laws on stablecoin. It allows him to continue his corruption,” Murphy posted on X. “Some of the Democrats who voted to advance the bill tonight want this changed before the final vote. So there is still time to fix this - if we speak up.”
U.S. Senators Chuck Schumer (D-NY) and Richard Blumenthal (D-CT) also voted against the legislation.
