On Tuesday, the United States Senate passed a bill aimed at establishing a regulatory framework for a United States dollar-linked encrypted currency token (i.e., a stable currency). This move is a landmark moment for the digital asset industry.
The bill, known as the Genius Act, was supported by two parties, and several Democrat parliamentarians joined the majority of Republicans in support of the proposed federal rules. The bill was eventually adopted by 68 votes to 30. Following the adoption of its version by the Republican-controlled House of Representatives, the bill will be submitted to President Donald Trump for approval.
“This is an important milestone.” Andrew Olman, the managing partner of Mayer Brown, stated that he had served as Deputy Director of the National Economic Commission during his first term in Tromp. “It establishes for the first time a system of regulation of the stable currency, a fast-growing financial product and industry.”
Stable currency is a encrypted currency designed to maintain a constant value, usually linked to $1:1. They are often used by encrypted money dealers for money transfers between currencies. Their use has grown rapidly in recent years, and proponents believe they can be used for immediate payments. If the bill becomes law, the stability currency must be supported by current assets (e.g. United States dollars and short-term national debt) and the issuer is required to publicly disclose on a monthly basis the composition of its reserves.
The digital asset industry has long been pushing legislators to develop regulations on digital currency, and they believe that a clear framework can make the stable currency more widely applicable. The industry spent more than $119 million in support of Congress candidates for a pro-encrypted currency in last year ' s elections and tried to portray the issue as a matter of common concern to both parties.
Although the House of Representatives adopted a currency stabilization bill last year, it was not considered by the Democratic majority Senate at that time, leading to its death.
Trump tried to introduce a wide-ranging reform of the encrypted monetary policy of the United States during his presidential campaign to attract money from the encryption industry. The head of the Digital Assets Advisory Board in Trump, Bo Heins, indicated that the White House wished to adopt a currency stabilization bill by August.
However, the various encrypted money projects in Trump once triggered tensions in the Hill of Congress, threatening the realization of legislative hopes in the digital asset sector this year, as Democrats are increasingly dissatisfied with Trump and his family's promotion of personal encrypted money projects.
In addition, Democrats are concerned that the bill will not prevent large technology companies from issuing their own private stabilization currency, and believe that stronger anti-money-laundering protection measures and a ban on the issuers of foreign currency stabilization are needed. In a speech before the Senate in May, Senator Elizabeth Warren of the Massachusetts Democratic Party said: “A bill that accelerates the development of a stable currency market while at the same time encouraging the corruption of the President and undermining national security, financial stability and consumer protection is better than not”.