John Deaton has cautioned that if the GENIUS ACT does not pass there won’t be any important crypto-related laws before the midterms. According to him, it’s not likely that a more complicated Market Structures Bill will pass.
Deaton said, “The reason I have this opinion is because the GENIUS Act isn’t controversial and truly is in America’s best interests, regardless of partisan politics.”
Deaton said that there are several pending crypto regulations. They include BitBonds or the Cynthia Lummis bill, crypto-related tax legislation, and consumer protections related to bankruptcies. They all depend on this one going through
The stablecoin market is currently over $238 billion. Most of the $ 3.3 trillion Bitcoin and other crypto tokens market is based on stablecoins. Traders often use stablecoins instead of cash to buy tokens.
Stablecoins are mostly used for trading right now, but their issuers think they could soon be a real threat to traditional payment networks. They also think that they could save users billions of dollars in fees on money transfers and other pricey international deals.
Deaton says that the bill has no shot at passing
Recently, the bill has been having trouble. There must be 60 votes for the bill to pass the Senate, and earlier this month, it looked like the GENIUS Act would easily pass with backing from both parties. It has already spent hundreds of millions on campaign contributions and lobbying.
However, according to Deaton, not letting stablecoin holders earn interest keeps them from competing with bank accounts. This could theoretically make the banking system less stable. This meant that the bill had no chance of passing. The lobby of the bank is real.
Big tech companies like Meta Platforms might be able to make their own stablecoins. A new version of the bill seems to make it impossible for tech companies to create stablecoins by requiring non-financial public companies to get special permission from a committee. The second problem is how President Trump does business with the industry.
Dems are divided concerning the GENIUS ACT
As reported by Cryptopolitan, there are Democrats like Sen. Elizabeth Warren and Rep. Maxine Waters who are not sure about the crypto business push. However, other Dems are including many other lawmakers who have become more open to it.
For instance, Sen. Mark R. Warner said, “The stablecoin market has reached nearly $250 billion, and the U.S. can’t afford to keep standing on the sidelines. We need clear rules of the road to protect consumers, defend national security, and support responsible innovation.”
He added, “The GENIUS Act is a meaningful step forward. It sets high standards for issuers, limits big tech overreach, and creates a safer, more transparent framework for digital assets. It’s not perfect, but it’s far better than the status quo.”
He expressed his concerns about Trump’s involvement in the crypto industry. However, he said they could stop Trump and his family from exploiting the industry. According to him, blockchain technology is here to stay.
Trump and his family could make money from the tokens because they own most of the crypto company World Liberty Financial, which has created a stablecoin called USD1. This is just one more reason why Democrats are worried about how quickly a comprehensive crypto bill will be passed.
Even within the crypto industry, there is more disagreement about how to police crypto exchanges and producers than there is about stablecoins. Something that needs to be considered is how to tell when a token is “decentralized” enough not to be regulated by securities laws.
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