
Senate takes big step toward regulating cryptocurrency
By Ray Bogan (Political Correspondent), Snorre Wik (Photographer/Editor)
- The Senate Banking Committee gave an initial thumbs-up to the Genius Act, which would create a regulatory framework for the cryptocurrency known as stablecoins. The bill sets up licensing guidelines and creates reserve requirements, as well as other ground rules for those who want to issue payment stablecoins.
- Supporters of the legislation say it will improve transaction efficiency, free up capital and drive U.S. Treasury demand.
- Sen. Elizabeth Warren, D-Mass., opposed the bill, saying it does not sufficiently address issues in the current crypto marketplace.
Full Story
The Senate Banking Committee gave an initial thumbs up to the Genius Act, which would create a regulatory framework for the cryptocurrency known as stablecoins. The bill sets up licensing guidelines and creates reserve requirements, as well as other ground rules for those who want to issue payment stablecoins.
Media Landscape
See how news outlets across the political spectrum are covering this story. Learn moreBias Distribution
Left
Right
Untracked Bias
Supporters of the legislation say it will improve transaction efficiency, free up capital and drive U.S. Treasury demand.
“If we are going to have economic supremacy in the world, it requires for us to encourage, frankly, innovation before we stifle it with too much oppressive regulation,” Sen. Tim Scott, R-S.C., said.

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.
Point phone camera here
According to Coinbase, stablecoins are a cryptocurrency with a stable value or price because they are directly tied to an asset, like the U.S. dollar.
The Genius Act requires stablecoins to be backed at least one-to-one with reserves, including the U.S. dollar, Treasury notes or bonds or other approved assets. Those reserves must be held in a regulated state or federal institution.
The act sets up rules and an application process for companies that want to become stablecoin issuers.
There are also guidelines for how those issuers will be regulated –– those with more than $10 billion will fall under the Federal Reserve’s framework for depository institutions and the Office of the Comptroller’s currency framework. In comparison, those with less than $10 billion will be regulated at the state level.
The bill creates criminal penalties for misusing or misrepresenting stablecoins.
It also clarifies that payment stablecoins are not backed by the U.S. government nor subject to deposit insurance from the FDIC.
Sen. Elizabeth Warren, D-Mass., opposed the bill, saying it does not sufficiently address issues in the current crypto marketplace, like scams.
“The bill even invites scammers into the market by refusing to prohibit people convicted of fraud and money laundering from owning stablecoin companies,” Warren said. “Sam Bankman-Fried could buy a stablecoin company from prison, and regulators would have no legal grounds to stop him.”
She also expressed concern that there aren’t enough national security protections. Criminal organizations like drug cartels and sanctioned nations use crypto to move money and make purchases that the global banking industry would otherwise block.
“Without changes, this bill will supercharge the financing of terrorism,” Warren said. “It will make sanctions evasion by Iran, North Korea and Russia easier, and it will help out international gangs that are moving fentanyl into the United States.”
Get up to speed on the stories leading the day every weekday morning. Sign up for the newsletter today!
Learn more about our emails. Unsubscribe anytime.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
Republicans pushed back against Warren, saying her claims do not apply to the legislation and that it does not create any loopholes.
“The Genius Act has gained this bipartisan support because it presents commonsense rules that protect consumers, promote competition and foster innovation,” Sen. Bill Haggerty, R-Tenn., said. “It’s time we provide the clarity and stability that our country and its innovators so desperately need.”
The bill will now move on to the full Senate for more debate and a vote. The House also needs to approve the bill before the president can sign it.
The Senate Banking Committee gave an initial thumbs up to the Genius Act, which would create a regulatory framework for the cryptocurrency known as stablecoins. The bill sets up licensing guidelines, creates reserve requirements, and other ground rules for those who want to issue payment stablecoins.
Supporters of the legislation say it will improve transaction efficiency, free up capital and drive US treasury demand.
Sen Tim Scott, R-SC: “If we are going to have economic supremacy in the world, it requires for us to encourage, frankly, innovation before we stifle it with too much oppressive regulation.”
According to Coinbase, stablecoins are a cryptocurrency with a stable value or price because they are directly tied to an asset, like the US dollar.
The Genius Act requires stablecoins to be backed at least one-to-one with reserves that can include the US dollar, Treasury notes or bonds, or other approved assets. Those reserves must be held in a regulated state or federal institution.
It sets up rules and an application process for companies that want to become stablecoin issuers.
There are also guidelines for how those issuers will be regulated – those with more than $10 billion will fall under the Federal Reserve’s framework for depository institutions and the Office of the Comptroller’s currency frame work, those with less than $10 billion will be regulated at the state level.
The bill creates criminal penalties for misusing or misrepresenting stablecoins.
It also clarifies that payment stablecoins are not backed by the US government, nor subject to deposit insurance from the FDIC.
Senator Elizabeth Warren expressed opposition to the bill because she said it does not sufficiently address issues in the current crypto marketplace, like scams.
Sen. Elizabeth Warren, D-MA: “The bill even invites scammers into the market by refusing to prohibit people convicted of fraud and money laundering from owning stable coin companies. Sam bankman Fried could buy a stable Coin Company from prison, and regulators would have no legal grounds to stop him.”
She also expressed concern that there aren’t enough national security protections. Criminal organizations like drug cartels and sanctioned nations use crypto to move money and make purchases that would otherwise be blocked by the global banking industry.
Sen. Elizabeth Warren, D-MA: “Without changes, this bill will supercharge the financing of terrorism. It will make sanctions evasion by Iran, North Korea and Russia easier, and it will help out international gangs that are moving fentanyl into the United States.”
Republicans pushed back against Warren and said her claims do not apply to the legislation and that it does not create any loopholes.
Sen. Bill Haggerty, R-TN: “The Genius Act has gained this bipartisan support because it presents commonsense rules that protect consumers, promote competition and foster innovation. It’s time we provide the clarity and stability that our country and its innovators so desperately need.”
The bill will now move on to the full Senate for more debate and a vote. It also needs to be approved by the House before it can be signed by the president.
Media Landscape
See how news outlets across the political spectrum are covering this story. Learn moreBias Distribution
Left
Right
Untracked Bias
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
MOST POPULAR
-
Reuters
Attorney General Pam Bondi warns Tesla vandals: ‘We’re coming after you’
Watch 1:534 hrs ago -
Getty Images
Lutnick floats Trump idea of no income tax for people earning less than $150K
Watch 1:389 hrs ago -
Reuters
American Airlines plane catches fire after emergency landing in Denver
Watch 1:1913 hrs ago -
Getty Images
Columbia announces punishments for pro-Palestine protesters
Watch 2:0021 hrs ago