Crypto Lobbyists Urge U.S. Senators to Dodge Distraction in Stablecoin Debate
The U.S. Senate’s stablecoin bill, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, is in the final stages of floor debate. This legislation aims to regulate stablecoin issuers—companies that create tokens pegged to the U.S. dollar, like Tether (USDT) and Circle (USDC). The bill has already passed the Senate Banking Committee and a preliminary floor vote with significant bipartisan support, despite some Democratic concerns linking it to former President Trump’s crypto business dealings.
Currently, the Senate is open to amendments, with over 50 submitted. This has led to attempts to attach unrelated legislation, such as the Credit Card Competition Act, which seeks to increase competition among credit card issuers. However, the chances of the credit card act passing are low, estimated at 10-15% by Capital Alpha Partners.
Crypto industry lobbying groups, including the Blockchain Association, Crypto Council for Innovation, DeFi Education Fund, and the Digital Chamber, have urged senators to focus on the GENIUS Act’s core objective: providing comprehensive stablecoin oversight. This represents the first policy engagement for the Blockchain Association’s new CEO, Summer Mersinger, recently appointed after leaving her position at the Commodity Futures Trading Commission.
Capital Alpha Partners assesses the GENIUS Act’s chances of becoming law this year at 60-65%. Even if it passes the Senate, a significant hurdle remains: approval in the House of Representatives. The House may have its own proposals for regulating stablecoins, potentially leading to further negotiations and amendments. Successful passage through both chambers would mark the first major piece of crypto legislation to clear the Senate and represent a landmark achievement for the crypto industry. Some analysts predict that the bill’s passage could even trigger a long-term bull market in cryptocurrencies. The intense lobbying and political maneuvering surrounding the GENIUS Act highlight the growing importance and influence of the cryptocurrency sector in U.S. policy.
