The US Senate Banking Committee has advanced the crypto industry’s stubcoin control bill, the first major step to gain efforts to sign the law on President Donald Trump’s desk.
With the approval of the first committee, the bill regulating US stubcoin issuers at the federal level now requires passage by the Senate-wide, and a similar version is awaiting approval in the House. Many hurdles remain, including the final fusion of different bills from each chamber, but the committee advanced the bill with 18-6 votes.
Many Democrats on the committee recognized the need for the bill and sought to add many amendments to add their respective regulatory controls and restrictions.
Sen. Elizabeth Warren, a ranking Democrat on the panel, led her colleagues’ objections to certain provisions in the bill. Warren became increasingly frustrated during the course of the 2.5-hour hearing as each of the proposed amendments to the bill was rejected.
“It would be crazy to move forward with this bill when there are so many holes that are being pointed out. And the news that the news is broken that Donald Trump is about to create his own stubcoin in the outfit famous for breaking the law is moving forward,” Warren said near the end of the hearing that Trump has replaced the world he has tied up. “It makes no sense to be trading with the crime stubcoin platform while Donald Trump is there and I regret this.”
Another Democrat, Nevada Katherine Cortez Mast, complained that Republicans on the committee were blowing up debates during markup. This is a type of hearing intended to consider and discuss amendments to moving laws, many of which did not appear in the hearing.
“It’s a great start, but we’re not ready for prime time,” the senator said of the Republican-led bill.
“The markup is messy,” South Caroline Republican Chairman Tim Scott responded. “We’ve been working nights, days and weekends to achieve this.”
Senate Bill Hagerty, a Tennessee Republican who was the leading author of the legislation, was called the US Innovation Act (Genius Law), a “real partisan effort” that incorporates democratic views. Democrats Kirsten Gillibrand of New York and Angela of Maryland? He conspired on the bill with many fellow Hagerty Republicans.
“We present common sense rules that protect consumers, promote competition and encourage innovation,” Hagerty said. “Now is the time to provide the clarity and stability that our nation and its innovators desperately need.”
The crypto industry has relied on the majority of lawmakers from both chambers of commerce to support this year’s policy efforts. So far this month, individual efforts to remove Internal Revenue Service rules opposed by the crypto sector have won widespread bipartisan votes.
Read more: Crypto’s IRS victory reveals Congressional reach demanding less compromise
It was the Democratic Senate Bank Bank Banking Committee in the previous Congress that held back the code laws that advanced in the Republican-led home. In the 2024 election, Republicans were in charge of both rooms, and Scott made Stubcoin law one of his top priorities.
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