This week, the US Senate failed to move forward on a major bill on Stablecoin regulation called the National Innovation Act and the establishment of national innovation for Stablescoins (Genius Act).
On May 8, united democratic legislators to block the bill, because 49 of them voted against the progress of the legislation, while 48 Republican senators argued.
Bipartisan support fractures while key democrats reject legislation on stables
In particular, several Democrats who had previously supported or co -sponsored the law on engineering – including Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Andy Kim, Kirsten Gillibrand and Angela Alsobrooks – voted against her.
This marks a surprise, since the bill had previously collected Bipartite legislative support.
Gallego and several colleagues defended their move in a joint declaration, saying that the proposal lacked critical guarantees.
According to them, the bill had to include a stronger language on laundry whitening, more robust surveillance of foreign stages and clearer application tools to ensure compliance.
They also cited national security problems and the stability of the broader financial system among their unresolved problems.
“We recognize that the absence of regulations leave consumers unprotected and vulnerable to predatory practices. We have addressed this process in constructive way and with an open mind, thinking that additional improvements to the bill would be made,” the legislators said.
However, Republican legislators and Pete Ricketts criticized the result of the vote, accusing Democrats of prioritizing political interests in political progress.
BO HINES, executive director of the President’s Council of Councilors on Digital Assets, argued that the Senate Democrats have missed a chance to promulgate reforms to stimulate innovation and secure the United States as a leader in financial technology.
“This bill did not concern politics – it was a question of building the future. It was a question of modernizing our obsolete payment systems and guaranteeing our position as a standard -standard in financial technology. Instead, democrats yielded to marginal ideological factions, abandoning the opportunity to clarify the market and promote American innovation”, wrote Hines on X.
Meanwhile, Matt Hougan, director of investments in Bitwise, described the result of “deeply unhappy”. He warned that the absence of clear regulations could block the adoption of stables and remove market growth, especially for altcoins.
Hougan also noted that a regulatory dead end could cause increased volatility between non -bitcoin assets this summer.
“If the legislation on the structure of the stables and the structure of the market stops at DC, it will be a long summer for the non-bitcoin crypto assets,” he noted.
Tether welcomes the Stablecoin update invoice
After the failed vote, a newly updated project of the Act on Engineering surfaced with notable changes.
The new project narrows its list of sponsors to the Republican senators Bill Hagerty, Cynthia Lummis, Tim Scott and Dan Sullivan. Democrats Kristen Gillibrand and Angela Alsobrooks, who had previously supported the bill, were removed from the updated version.
The latest project is expanding the American jurisdiction to cover stable transmitters abroad like Tether who serve American users. It also refines the legal definition of digital asset service providers and updates the types of assets that can support stablescoins.
These changes suggest pressure for wider monitoring and greater flexibility in reserve management.
Meanwhile, the CEO of Tether, Paolo Ardoino, responded positively to the revisions of the bill. He said the company has constructive regulation and is eager to continue commitment to American decision -makers.
According to Ardoino, the establishment of a solid regulatory framework could help guarantee the domination of the US dollar in the world markets.
“We recognize and appreciate the hard work that the administration has done to support the legislative process concerning this transformative technology … We are impatiently awaiting the continuous efforts of the government to legislate in a way that promotes the hegemony of the world dollar,” he said.
Non-liability clause
In membership of the Trust project guidelines, Beincrypto has embarked on transparent impartial reports. This press article aims to provide precise and timely information. However, readers are invited to check the facts independently and consult a professional before making decisions according to this content. Please note that our terms and conditions, our privacy policy and our non-responsibility clauses have been updated.
