A week-long drama about whether Senate genius is really in Nailbiter Did he die or notit appears that progress has been made on Thursday. The custody Democrats are promoting concessions they received from their Republican colleagues in a new draft of the bill that they could vote earlier this week.
Decryption I got a copy and reviewed this negotiated draft of the Senate Stablecoin law. The bill actually includes new languages on issues such as national security protection, ethics, major technology, and foreign publishers. However, it is currently unclear whether these measures have enough teeth to enable them to be enforced.
The most famous issues that plague the negotiations over the bill involve the president himself, Donald Trump, and his recognition of crypto-related conflicts of interest. His family’s crypto company, World Liberty Financial, launched its own Stablecoin earlier this year and recently announced it 2 billion dollar deal It is related to tokens with the UAE government. The Democrats have I insisted Trump must not be permitted to issue stablecoins while in office.
In the new language of the bill, which Democrats touted as including improved ethical considerations, the president and vice president are exempt from rules prohibiting all senior executive officers from issuing their own stubcoins. However, the new language now expressly prohibits providing such tokens, such as Elon Musk, White House AI and Crypto Czar David Sacks.
Stablecoins are cryptocurrencies and are usually pinned in the US dollar, allowing users to participate in digital asset transactions and leave without direct access. It can also be used to send overseas remittances and payments. And once a stable law is signed, traditional banking companies flood the sector and encrypt billions, if not billions.
The Genius Act establishes a legal framework for issuing Stablecoins in the United States. Another important point of attachment in negotiations over the bill is expected to launch high-tech titans such as Apple, Meta, and Amazon to launch their own Stablecoins and use financial data from those tokens to target users and study purchasing behavior. The new draft of the Genius Act contains text targeting Big Tech for the first time, but may not reach the intended goal.
According to the latest draft of the bill, “public companies that are primarily not engaged in one or more financial activities.” (AKA a large tech company) may issue Stablecoin only if an independent Stablecoin certification review board determines that it does not pose a “material risk” to the US banking system, and the company does not use Stablecoin transaction data to target customers or sell that data to third parties. Large tech companies will fully acquire the right to sell to anyone, as long as their customers are conditional on service, using Stablecoin transaction data as needed.
Further concerns about stubcoins, expressed by some Democrats, could cause such tokens to “de-peg” “pegs” from the dollar’s valuation and collapse, spreading chaos through the US financial system. The risk of worsening in such a scenario is the fact that Stablecoins are not supported by FDIC, so the US government will not guarantee that customers will be repaid in the case of banking operations. The new act of genius now includes a language about bankruptcy, but there is no solid commitment on the subject.
Instead, the new bill requires that research be conducted for Congress within three years after the Genius Act becomes law. Congress has no obligation to do anything in research.
The main question related to the pending stubcoin bills in both Houses of Congress is how these bills will treat foreign issuers, the world’s largest stubcoin company based in El Salvador. Due to previous drafts of the Genius Act, Stablecoins are not offering Stablecoins in the state that are not registered in the US. Democrats complain that such requirements don’t address their concerns about stupid things like Tether. Money laundering Evade sanctions.
The new, improved genius law includes a language on such issues, but leaves U.S. Treasury Secretary Scott Bescent with discretion to the question. For example, a foreign country with a comparable stubcoin regime cannot currently be a jurisdiction of “major money laundering concerns.” This is the determination left to the Secretary of the Treasury.
These countries must also implement “counterfinance of appropriate money laundering and terrorism programmes and sanctions compliance standards,” as determined by their secretaries. As a political appointee serving at the president’s joy, it is unclear what decisions the Treasury will make in that area. The Salvador government, where Tether is headquartered, is Close relationship With the Trump administration – it’s itself stitched together.
It remains unclear whether the Genius Act has regained the support of major Democrats, many of which require the new bill’s text to be reviewed before they are submitted to the ballot. But the cycle of new texts is itself an indication that pro-cryptic Democrats are sure they have gained enough concessions to move forward. new Legal floor voting.
Over the past week, Crypto’s policy leaders have been worried that Democrats could use new leverage to attract key concessions from Republicans over the bill’s obsession points. But with the advent of this new text, all of those horrors have evaporated.
“I feel like something’s missing,” said one crypto industry leader who reviewed the new act of genius. Decryption. “Because it can’t be read as too good.”
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