This week, the US Senate failed to move forward in the main Stablecoin draft law called the direction and creation of the national innovation of the American Stablecoins Law (the Genius Law).
On May 8, Democratic lawmakers united to prevent the draft law, as 49 of them voted against the progress of legislation, while 48 members of the Republican Senate supported it.
Supporting the two parties as fracture
It is worth noting that many Democrats who previously supported or participated in his patronage of the genius process-including Robin Galigo, Mark Warner, Leza Blant Rothschest, Andy Kim, Kirsten Gilbrand, and Angela Alecoprox.
This is a surprise, given that the draft law previously obtained legislative support from the two parties.
Galigo and several colleagues defended their movement in a joint statement, saying that the proposal lacks critical guarantees.
According to them, the invoice needed to include a stronger language on money laundering, the most powerful control of the foreign stablecoin exporters, and enforcement tools are clearer to ensure compliance.
They also pointed to the concerns of national security and the stability of the broader financial system among their unnamed issues.
“We realize that the absence of an organization leaves consumers unhealthy and exposed to predators. We have dealt with this process constructively and with an open mind, with an understanding that additional improvements to the draft law will take place.” I mentioned.
However, Republican lawmakers such as the Rikitz Beit criticize As a result of the vote, the Democrats were accused of giving the priorities of political interests on political progress.
Bo Heins, CEO of the Chairman’s Chamber of Advisors at digital assets, argued that Democrats in the Senate had lost an opportunity to enhance reasonable reforms to enhance innovation and secure the United States as a leader in financial technology.
“This draft law was not related to politics-it was related to building the future. It was a matter of updating our old payment systems, securing our site as a global commander of financial technology. Instead, Democrats carried out the neglected ideological factions, and giving up the opportunity to clarify the American market and innovation for reinforcement,“ Hines, ”Hines books On x.
Meanwhile, Matt Hogan, the chief investment official in BitWise, described the result as “very unfortunate.” He warned that the lack of clear regulations could stop the adoption of Stablecoin and the suppression of market growth, especially for the balloons.
Hogan also pointed out that organizational stalemate can lead to an increase in volatility across the assets other than bitcoin this summer.
“If Stablecoin’s legislation and the market structure stop in the capital, it will be a long summer for encrypted assets other than bitcoin”, ” male.
Tether welcomes the updated stablecoin
After the failed vote, it was recently updated draft From the law of genius appeared with noticeable changes.
The new draft narrows the list of sponsors to the Republican Senator Bill Hajri, Cenathia Lomes, Tim Scott and Dan Sullivan. Democrats Christine Gilbrand and Angela Aleluxe, who had previously supported the bill, were removed from the updated version.
The recent draft expansion of the United States to cover the exporters of foreign Stablecoin, such as Tether who serve American users. It also improves the legal definition of digital asset service providers and updates the types of assets that can support Stablecoins.
These changes indicate the payment of wider supervision and more flexibility in the reserve management.
Meanwhile, Tether Paolo Ardoino’s CEO has responded positively to the draft law. He said that the company supports construction organization and is looking to more participation with American policy makers.
According to Ardoino, creating a strong organizational framework can help secure the dominance of the US dollar in global markets.
“We acknowledge and appreciate the hard work that the administration has done to support the legislative process with regard to this transformative technology … We look forward to the ongoing efforts of the government to legislate in a way that enhances the global domination of the dollar,” He said.
Disintegration
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