Thune: Full Steam Ahead on the Bipartisan GENIUS Act
“It’s the first step in bringing digital assets into our financial system by setting a clear framework for stablecoins.”
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WASHINGTON — U.S. Senate Majority Leader John Thune (R-S.D.) today delivered the following remarks on the Senate floor:
Thune’s remarks below (as delivered):
“Mr. President, it’s been well over a decade since the term ‘cryptocurrency’ entered our lexicon.
“Like many innovations, cryptocurrencies were at first seen as a novelty – something used by few and understood by even fewer.
“But that changed quickly.
“More people began using and purchasing digital assets.
“Innovation took place.
“And crypto demonstrated its staying power.
“Mr. President, stablecoins are an important part of the crypto ecosystem.
“Many digital asset advocates believe in holding Bitcoin given its price fluctuations and growth in value over the last several years.
“Stablecoins, however, have a value that’s pegged to an asset – usually the U.S. dollar.
“They offer the speed and security of the blockchain with the stability and usability of a dollar bill.
“And they’re a business- and consumer-friendly way of making payments.
“Mr. President, hundreds of billions of dollars of stablecoins are in circulation today.
“The vast majority are dollar-denominated.
“But in the United States, stablecoins have operated in a legal gray zone.
“Stablecoin issuers trying to follow the rules can’t be sure what rules to follow.
“The Biden administration chose to regulate crypto companies by arbitrary enforcement measures.
“Regulators filed numerous lawsuits against crypto firms.
“And these hostile actions led a number of U.S.-based companies to consider moving out of the United States altogether.
“Mr. President, I think we all agree the United States should be the world’s leader in financial innovation.
“Stablecoins should be ‘Made in the USA.’
“But we can’t lead in innovation if there’s no clarity for the innovators.
“The GENIUS Act provides that clarity.
“It’s the first step in bringing digital assets into our financial system by setting a clear framework for stablecoins.
“To be clear, Americans are already using stablecoins and will continue to use them with or without this legislation.
“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.
“The GENIUS Act would implement light-touch and tailored standards for stablecoin issuers so consumers can trust who they’re doing business with.
“Reserve requirements would give consumers confidence in the value of the stablecoins that they hold.
“And the bill’s enforcement provisions would provide companies with clarity on what the rules are and ensure accountability for any violations.
“The GENIUS Act would also protect against national security threats and money laundering.
“Stablecoin issuers would be held to the same standards as other financial institutions subject to the Bank Secrecy Act.
“They would need to monitor and report suspicious activity.
“They would have to comply with U.S. sanctions.
“And they would have to block transactions that violate state and federal laws.
“Mr. President, stablecoins are operating today without any of these requirements.
“And not passing this bill means allowing the status quo to continue – no consumer protections, no national security safeguards, and the risk of arbitrary enforcement actions from financial regulators.
“Passing this bill is also about American strength.
“It would create demand for the U.S. dollar and for treasuries.
“That’s a good thing, both for our national security and for our fiscal house.
“Mr. President, this bill is the product of bipartisan consensus-building.
“I’m proud of the process that this has gone through.
“And I’m grateful to Senators Lummis, Hagerty, Gillibrand, and Alsobrooks for their leadership on this issue and their work on the bill.
“Chairman Tim Scott has also been a critical member of the team.
“The Banking Committee held a three-hour markup during which the committee considered 40 amendments to the bill.
“That bill was reported out by a vote of 18 to 6, with five Democrats supporting it.
“But the work didn’t end there.
“Bill sponsors have been meeting for weeks – including nights and weekends – since the markup to address changes that make this bill better.
“Today we’re voting on the sixth – sixth – version of the GENIUS Act, drafted with input from both Republicans and Democrats.
“And if senators would like the opportunity to make further modifications to the bill, I encourage them to vote for cloture.
“Once we’re on the bill, we can discuss changes here on the floor.
“We’ve had an open process on this bill so far, so why stop now?
“Mr. President, the GENIUS Act is by no means the last word on digital assets.
“I expect the Senate will continue to work in this space, including work toward market structure legislation to address features of the crypto market that are not captured solely by stablecoins.
“But the GENIUS Act is a first step toward bringing digital assets into our financial system and promoting American leadership in financial innovation.
“We have the opportunity to move the ball forward today.
“And, Mr. President, I encourage my colleagues to take it.”
Related Issues: Cryptocurrency
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