In a significant move, former President Donald Trump has endorsed the recently passed Senate bill on stablecoins, branding it as “pure GENIUS” and advocating for a swift passage in the House. This endorsement underlines a pivotal moment for cryptocurrency regulation in the United States.
Trump praised the Senate’s new legislation as transformative, asserting that it positions the US to be the “UNDISPUTED Leader in Digital Assets.” He emphasized the need for immediate action, pushing for the bill to move forward without any adjustments or delays. In his own words, he insisted on “NO DELAYS, NO ADD ONS.”
Trump’s Call for Urgency
In statements made following the Senate’s approval, Trump has expressed a desire for the House to quickly pass a straightforward version of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. He cautioned against any attempts to modify the Senate’s text or integrate it into larger cryptocurrency legislation. The urgency is clear: Trump wants the bill on his desk “ASAP.”
Decisive Moment for the House
House representatives find themselves at a crossroads, with two distinct options. They can either endorse the Senate bill unchanged or integrate it into a wider array of crypto regulations. This decision is particularly pressing after a previous proposal supported by Congressman French Hill revealed critical differences, especially concerning reserve requirements and registration processes.
There is significant concern that a focused vote may hinder more comprehensive regulatory efforts regarding token securities, decentralized finance (DeFi), and exchange oversight.
Senate Aiming for Prompt Passage
Bill Hagerty, the senator behind the bill, is optimistic about pushing the GENIUS Act to Trump before the July 4 holiday. However, he cautioned that any changes from the House, particularly those relating to “market structure,” would necessitate further Senate review, potentially delaying the entire process.
After months of negotiations, the bill gained fragile support from both Republican and Democratic Senators, barely crossing the necessary threshold for passage.
Global Competition in the Digital Asset Space
Industry analysts assert that creating clear guidelines in the US could significantly aid stablecoin issuers such as Circle and Paxos, allowing them to navigate a uniform legal landscape rather than facing a fragmented state licensing system. Meanwhile, jurisdictions like the EU, Singapore, and Hong Kong are actively developing their frameworks. Without prompt legislative action, there’s a risk that these entities may migrate abroad, taking crucial banking partnerships and skilled personnel with them.
The urgency for federal clarity is echoed by various crypto advocacy groups, which have amplified their lobbying efforts. Some voices caution that piecemeal legislation may create gaps in reserve audits or consumer protections. Conversely, many argue that even a narrow law governing stablecoins could lay the groundwork for comprehensive reforms to follow throughout the year.
Featured image from Unsplash, chart from TradingView
