This week in crypto saw significant legislative activity, primarily focusing on stablecoin regulation and broader market structure. The Senate’s attempt to pass the GENIUS Act, aiming to establish a framework for stablecoins, faced unexpected hurdles. While not dead, its passage is now uncertain. Democrats raised concerns about national security, financial system soundness, and accountability, particularly regarding President Trump’s potential involvement with stablecoins. This led to the introduction of the “End Crypto Corruption Act,” aiming to prevent government officials from profiting from crypto assets.
A procedural vote on the GENIUS Act failed, primarily due to a lack of readily available bill text and concerns about Democrats’ priorities not being addressed. Negotiations continue, focusing on foreign issuer treatment and anti-money laundering provisions, although a direct ban on presidential involvement with stablecoins is unlikely. The delay may impact the progress of the House’s market structure bill, which seeks to redefine how the CFTC and SEC oversee digital assets. Despite the setback, the stablecoin bill’s passage is still anticipated, potentially within the next week.
Other noteworthy events included the unveiling of a House market structure bill, New Hampshire becoming the first state to approve a crypto reserve law, and ongoing legal battles involving Samourai Wallet and Ripple. The sentencing of Celsius CEO Alex Mashinsky to 12 years in prison highlighted the risks within the crypto space. In other news, allegations of a fake death to manipulate a memecoin emerged, and the CFTC dropped its appeal in the Kalshi election betting case. Furthermore, Senator Blumenthal is investigating Trump’s crypto businesses, and Coinbase documents revealed the NY Attorney General’s push for ETH to be classified as a security. Finally, the OCC clarified banks’ ability to buy and sell customer crypto assets, while concerns were raised about Meta’s potential re-entry into the stablecoin market.
