Setback for Stablecoin Regulation: Senate Vote Falls Short
Legislation aimed at regulating stablecoins in the U.S. failed to pass a key vote in the Senate. The setback impacts the crypto industry's push for stable regulations. The bill, known as the GENIUS Act, faced opposition due to concerns over foreign stablecoin issues and anti-money-laundering protections.
Efforts to establish a regulatory framework for stablecoins in the United States took a hit on Thursday when the Senate failed to advance crucial legislation. The bill, aimed at regulating dollar-pegged cryptocurrency tokens, was unable to clear a significant legislative hurdle, falling short of the required votes to end debate.
The failure marks a significant blow for the cryptocurrency sector, which has invested heavily in lobbying efforts. The industry, having spent over $119 million on pro-crypto congressional candidates, has long sought comprehensive rules for digital assets. Stablecoins hold particular importance as they enable fluid transactions in the crypto trading world.
Despite efforts to paint the GENIUS Act as a bipartisan effort, it faced resistance. Concerns arose primarily from Democrats about foreign stablecoin issues and anti-money-laundering provisions. Two Republican senators, Josh Hawley and Rand Paul, joined Democrats in stalling the bill's progression, leaving supporters grappling with the unexpected setback.
(With inputs from agencies.)
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