GENIUS Act: Leaders Slam Senate Over Regulatory Gridlock on Stablecoins

The crypto community is once again plagued by the regulatory uncertainty surrounding stablecoin, as the US Senate has failed to advance the much-anticipated GENIUS Act. The Senate’s inaction has sparked a fresh wave of commentary from prominent figures, including Scott Bessent, John Deaton, and Senator Cynthia Lummis.

US Treasury Secretary Slams Senate Inaction on GENIUS Act

In a recent X post, the US Treasury Secretary Scott Bessent expressed strong disappointment over the Senate’s failure to advance the GENIUS Act. According to Bessent, American leadership is crucial for the global growth of stablecoins and cryptocurrencies. The Senate’s inaction may lead to other countries taking the lead in this space, potentially undermining US influence in financial innovation, stated Bessent.

Further criticizing the Senate’s inaction, Scott Bessent argued that a streamlined federal framework is essential for innovation. Urging the Senate to take swift action, the Treasury Secretary posited that the Senate’s inaction would not only stifle innovation but also risk driving digital asset development offshore. Bessent’s statement follows his strong opposition to the Fed’s potential move to issue a CBDC.

Senator Lummis Expresses Disappointment Over GENIUS Act’s Failure

Moreover, Senator Cynthia Lummis has also voiced her disappointment over the Senate’s inability to pass the GENIUS Act. In an X post that followed the Senate’s decision, Lummis underscored the importance of digital assets in the future. According to her, the GENIUS Act represents a crucial move towards asserting US leadership in the digital economy. She also acknowledged the efforts of several key figures, including President Trump, Senator Gillibrand, Leader Thune, Chairman Scott, and Senator Hagerty, to establish a solid regulatory framework.

XRP Lawyer Calls for Bipartisan Cooperation

Another prominent figure who raised his voice against the Senate is the pro-XRP lawyer John Deaton. He asserted that Senators should prioritize the country’s interests over partisan politics. Deaton wonders what triggered the sudden impasse on the GENIUS Act, despite last week’s bipartisan support. He urges lawmakers to set aside partisan differences and prioritize the country’s interests, pushing for renewed efforts to advance the bill.