Western South Dakota News

U.S. Senate Majority Leader John Thune addressed the Senate floor, emphasizing the significance of the bipartisan GENIUS Act in regulating stablecoins and promoting financial innovation in the United States.

Thune remarked, “It’s been well over a decade since the term ‘cryptocurrency’ entered our lexicon,” noting how cryptocurrencies transitioned from being seen as novelties to widely used digital assets. He highlighted that stablecoins play an important role within this ecosystem, offering both speed and security akin to blockchain technology with the stability of traditional currency.

According to Thune, stablecoins have operated in a "legal gray zone" in the U.S., with issuers uncertain about regulatory requirements due to arbitrary enforcement measures by the Biden administration. He stated, “Regulators filed numerous lawsuits against crypto firms,” which led some companies to consider relocating outside of the country.

Thune asserted that for America to lead in financial innovation, there must be clarity for innovators. He introduced the GENIUS Act as a means of providing such clarity by establishing a framework for stablecoin regulation. “What this bill does is establish a framework that protects consumers and safeguards national security while promoting that innovation right here in the United States,” he said.

The act proposes light-touch standards for issuers, reserve requirements for consumer confidence, and enforcement provisions ensuring accountability. It also aligns stablecoin issuers with existing financial institutions under laws like the Bank Secrecy Act to combat money laundering and ensure compliance with U.S. sanctions.

Highlighting bipartisan support, Thune acknowledged Senators Lummis, Hagerty, Gillibrand, Alsobrooks, and Chairman Tim Scott's contributions. The Banking Committee reviewed 40 amendments during its markup session before passing it 18-6 with Democratic backing.

As discussions on potential modifications continue on what is now the sixth version of the bill, Thune encouraged further input from senators: “We’ve had an open process on this bill so far, so why stop now?”

He concluded by expressing optimism about future legislative efforts concerning digital assets beyond stablecoins: “The GENIUS Act is a first step toward bringing digital assets into our financial system and promoting American leadership in financial innovation.”