Latest news with #GeniusAct
Business Times
6 hours ago
- Business
- Business Times
Crypto industry boosted lobbying to pass coveted stablecoin bill
[WASHINGTON] Crypto companies and advocates of digital assets boosted their lobbying this year to ensure passage of landmark legislation, delivering the nascent industry its first major policy victory in Washington. The firms reported spending US$6.9 million in the second quarter, congressional disclosures show, a 21 per cent increase over their outlays in the previous three months. The expanded spending came as Congress advanced industry-backed bills, including stablecoin legislation that US President Donald Trump signed into law last Friday (Jul 18). During the run-up to the bill's passage by the House of Representatives, during what Trump dubbed 'crypto week', Bitcoin roared to record highs, breaching US$120,000 for the first time. The law, known as the Genius Act, sets regulatory rules for US dollar-backed stablecoins, a move advocates say will broaden the adoption of digital assets in everyday finance. And more bills supported by the industry are moving through Congress. The House has passed broader legislation that creates a market structure for trading digital assets and a bill that bars the US Federal Reserve System from issuing its own cryptocurrency. Both measures await Senate approval. The total spent by the crypto firms and allies is still relatively small by Washington standards as lobbyists focused their attention largely on industry-specific concerns. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Coinbase Global, one of the biggest lobbying spenders with expenditures at US$970,000, listed just seven issues it focused its lobbying on. Six of those concerned digital assets, including the stablecoin and market structure bills. It also lobbied on matters affecting the Securities and Exchange Commission's budget and appropriations request. By contrast, pharmaceutical giant Pfizer spent US$3.5 million in the second quarter, lobbying on dozens of issues including the federal budget, vaccine coverage, intellectual property protection, taxes, tariffs, other trade barriers, international supply chains, and regulation of pharmacy benefit managers, according to its disclosure. That laser-sharp focus was demonstrated in the 2024 election, in which industry executives and advocates for digital assets tapped their war chests to back friendly candidates, most prominently Trump. Fairshake, the industry's super political action committee, and two affiliated super-PACs combined to raise US$230 million. They stayed out of the presidential contest, and instead backed or opposed congressional candidates based on their positions on cryptocurrency. It marked an unprecedented sum for an organisation with a single business interest. The National Association of Realtors Congressional Fund was the next biggest super-PAC, raising US$20 million. Fairshake announced days before the House vote on the stablecoin bill that it raised US$109 million since the 2024 election, including US$25 million donated by Coinbase. Part of the increased spending on lobbyists was driven by new hiring in 2025, with 44 additional lobbying registrations filed with Congress, more than the number who signed up in all of 2024. Tether Operations, whose eponymous stablecoin is among the most widely traded, has added four new firms this year, collectively paying them US$290,000. A one-time sceptic who has embraced the industry, Trump courted crypto enthusiasts during his 2024 campaign. He made US$57.7 million from token sales via a digital assets firm he and his sons helped launch in 2024, according to his most recent financial disclosure. BLOOMBERG
Yahoo
9 hours ago
- Business
- Yahoo
SharpLink's Ether Bet Surpasses $1.3B After Latest Purchase
SharpLink Gaming (SBET), the ether (ETH) treasury company led by Ethereum co-founder Joseph Lubin, continued its buying spree bringing total holdings above $1.3 billion. The firm said in a Tuesday press release that it acquired 79,949 ETH over the last week at an average price of $3,238, its largest weekly purchase ever. With the latest acquisition, the firm held 360,807 ETH as of July 20, worth roughly $1.33 billion at current prices. The company still has $96.6 million of funds raised by selling shares through its at-the-market equity for more ETH purchases, the company said. SBET shares were 6% up in premarket trading even as ETH slipped 2.4% over the past 24 hours. SharpLink announced a pivot to a crypto treasury strategy centered on Ethereum in late May, taking a page of bitcoin-focused playbook of Michael Saylor's Strategy. Joseph Lubin, who is also the CEO of Ethereum development firm Consensys, joined the firm as chairman. The firm has quickly become one of the largest corporate owner ETH, the second-largest cryptocurrency by market cap, while operating validators and staking the tokens to earn a reward. Last week, it announced to raise the ATM facility to $6 billion to raise more funds by selling shares for ETH acquisitions. Lubin also praised the recent signing of the GENIUS Act by President Trump into law, calling the legislation a watershed moment that provides regulatory clarity for blockchain and digital assets in the U.S. "With the Genius Act now law, the regulatory uncertainty that has surrounded crypto innovation is finally easing," Lubin said in a statement. "We believe this ushers in a more supportive environment for companies like SharpLink to not onlyoperate and grow, but also to harness the full potential of Ethereum — including its security, scalability and smart contract utility — to drive profound, transformative change across the global digital economy."Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
20 hours ago
- Business
- Mint
America's Genius Act for crypto regulation shows no ingenuity
If this session of the US Congress is remembered for anything, it may be for poorly named legislation. First there was the One Big Beautiful Bill, which wasn't. Now there is the Genius Act, which isn't. The Guiding and Establishing National Innovation for US Stablecoins Act, which Congress passed this week, would regulate stablecoins and effectively transform them from a security to a means of payment. While there is a need for some regulation, as some retailers are considering issuing their own stablecoins, mainstreaming cryptocurrency is hardly a genius move. The bill would introduce a tremendous amount of risk to the financial system and to consumers. And for what purpose? The US already has a means of payment—it's called the dollar—and it works pretty well. For most of crypto's history, its use case, other than paying for goods and services in the underground economy, has been unclear. Tokenization does have the potential to make payments quicker and more efficient. Also read: Mint Explainer: CoinDCX loses $44 mn to hackers. Why are crypto firms especially vulnerable? The big problem has always been volatility: Cryptocurrencies are not a stable store of value, and therefore not a useful means of payment. Stablecoins solve this by striving to maintain a dollar peg. They can do this in several ways, the most common of which is to use low-risk assets such as Treasury bills as backing. This will not produce a perfect peg to the dollar. The exchange rate between the dollar and Tether, the most popular coin backed mostly by Treasury bills, still fluctuates. It is more stable than an unhedged cryptocurrency, but not perfect. Crypto coin issuers are very similar to banks of the 1830s, which also issued their own currencies and were regulated by the states. In a similar spirit, under the Genius Act, companies that issue less than $10 billion worth of coins would also be regulated by the states while the US Federal Reserve would regulate bigger issuers. The thing about the 1830s is that the system was very chaotic. Constant oversight was necessary, because any hint of currency devaluation created bank runs and failures. States had different standards, and several underregulated their local banks, creating a lack of confidence in the system. Back then consumers had no choice, as no universal fiat currency was widely available. Today, of course, Americans can just use dollars. Vendors don't have to worry that their value will fluctuate and holders don't have to worry that it will collapse. The central bank will ensure that it doesn't. And despite the occasional bout of inflation, the Fed has a great track record. Also read: Subhash Chandra Garg: Don't vacillate on a regulatory framework for crypto assets Mainstreaming stablecoins also poses risks to the financial system. Stablecoin issuers are already becoming a major source of demand for US Treasuries. Tether purchased more than $33 billion of them last year and now owns more than Germany. If the market takes off, some banks estimate stablecoin issuers could be a captive buyer for trillions of dollars in Treasuries. The government might find that extra demand appealing, as it would help keep rates low. But it also introduces systemic risk. If there is ever a run on a large coin, all these Treasuries would need to be sold quickly—potentially causing a financial crisis or risking a bailout. It's worth asking what the benefits of the Genius Act might be. It would make payments more efficient than the current system of using banks and credit and debit cards—which all charge non-trivial fees. But for stablecoin issuers to turn a profit, they'd also have to charge fees. Currently they earn most of their revenues from returns on their reserve assets. But to comply with effective regulation or just inspire confidence, these assets need to have a stable price (relative to the dollar) and be perfectly liquid. In other words, they have to be the kind of asset that pays no return. The only way to make money while also paying compliance costs would be to charge fees. Probably not much less than what credit-card companies or banks charge. There are also concerns specific to the Genius Act itself: There is not enough regulatory scrutiny, so illicit use would still be possible. There are inadequate provisions for bankruptcy and for enforcement. And then there are concerns about conflicts of interest—particularly with the president, whose family issues its own coins. But the biggest question is why the US government wants to make it easier to use stablecoins as a means of payment. Not only does it create needless risk, but it also undermines the government's own function as the issuer of the dollar. Also read: Defence alert: Crypto is turning into a geopolitical weapon The Bank for International Settlements (BIS) has a better idea: To get the benefits of cryptocurrency while minimizing risks, and to better integrate blockchain technology into central banking, just tokenize the US dollar. ©Bloomberg
Yahoo
a day ago
- Business
- Yahoo
Why Ethereum Is Inching Higher Today
Key Points Ethereum saw massive valuation gains last week, and it's inching higher in Monday's trading. Political tailwinds and other bullish catalysts are combining to nudge the token higher today. Ethereum's valuation could continue to benefit from investors moving out of Bitcoin in favor of tokens with greater return potential. 10 stocks we like better than Ethereum › Ethereum (CRYPTO: ETH) has been moving slightly higher in Monday's trading. The cryptocurrency's token price was up 0.4% over the previous 24 hours of trading as of 5:45 p.m. ET. Meanwhile, Bitcoin was down 0.6% across the stretch. Ethereum is inching higher today as moderate bullish momentum for altcoins continues to persist after last week's massive rally. Ethereum is now up roughly 25% over the last seven days of trading. Ethereum is continuing to climb Ethereum posted massive gains last week thanks to the "Crypto Week" legislative push and the Genius Act being signed into law by President Trump. The Genius Act establishes regulatory frameworks for stablecoins and could help spur much wider adoption for this category of cryptocurrencies. Many of the leading stablecoins are built on the Ethereum network. In order to run operations on the Ethereum network, a cost needs to be paid with the network's Ether token. With indications that stablecoins could see much wider adoption, there could be major bullish catalysts for Ethereum's valuation. In addition to the bullish catalyst from the Genius Act, Ethereum also appears to be benefiting from some investment dollars moving out of Bitcoin. An increasingly favorable outlook for the crypto industry is causing investors to back altcoins that offer higher reward potential in exchange for taking on higher risk. What's next for Ethereum? Ethereum could be poised to see long-term valuation tailwinds if government support for stablecoins and the broader cryptocurrency is solidified. In addition to the Genius Act being signed into law last week, Ethereum also saw bullish momentum in conjunction with the House of Representatives voting to pass the Clarity Act -- legislation that would effectively limit the amount of regulatory control that the Securities and Exchange Commission (SEC) has over cryptocurrencies. While the Clarity Act would still need to be passed by the Senate and signed by President Trump before becoming law, its enactment would likely be a bullish catalyst for Ethereum. Should you buy stock in Ethereum right now? Before you buy stock in Ethereum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ethereum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy. Why Ethereum Is Inching Higher Today was originally published by The Motley Fool Sign in to access your portfolio
Mint
a day ago
- Business
- Mint
Act now: Crypto regulation cannot be left for another day
India topped global crypto adoption for the second year in 2024, according to Chain- alysis, a US-based blockchain analysis firm, with 119 million investors, nearly one-fifth of all crypto holders worldwide. The US ranked second with 53 million investors, followed by Indonesia with 39. Telling as these estimates are, the ranks could soon change. Last Friday, US President Donald Trump signed into law the Genius Act to create a regulatory regime for stablecoins. American investors, unlike their Indian counterparts, will now have the comfort of a regulatory framework. America's new law requires stablecoins—or crypto tokens whose value is pegged to a regular currency—to be backed by liquid assets such as US dollars and short-term Treasury bills. Also read: Mint Quick Edit: Time to rescue crypto from policy limbo This enhances their credibility. Issuers must also disclose the composition of their reserves every month. Consequently, digital assets could become a routine way to make payments and transfer money. Stablecoins, mostly designed to maintain a 1:1 dollar peg, are already in heavy use. Under the new law, the market could grow to $2 trillion by 2028, as Standard Chartered Bank estimated. For comparison, the market for gold is projected to grow to just $458 billion by 2032, according to Fortune Business Insights. India, alas, is yet to regulate cryptocurrencies. Even as India's wealthy and not-so-wealthy seem drawn almost irresistibly to crypto assets, despite the risks, we remain in a regulatory vacuum. The government has been quick to tax crypto gains, but has not been remotely as agile in clearing the fog on digital assets or laying down rules. As former finance secretary S.C. Garg argued in a Mint oped, India's approach to crypto assets has been piecemeal, passive and systemically unsustainable. A long-awaited discussion paper on the subject is yet to be released. Meanwhile, investors in these digital assets appear to be swelling steadily. According to reports, retail investors dominate crypto exchanges in India, making up 90-95% of users, though they account for only 30-50% of trading volumes, while high net-worth individuals and institutions are fewer in number (4-10%) but drive 50-70% of turnover with larger trades and their frequent use of derivatives. India's regulatory vacuum has seen several crypto exchanges rush in to meet demand, but the safety of these platforms is a wild guess. Take cyberattacks. Just last week, CoinDCX suffered a cyber heist of $44 million, with this money reportedly stolen by hackers from an internal account. Though the exchange said all investments are safe, the incident highlights the need to make this market both safer and more transparent. Last year, WazirX had lost $234 million to theft. Also read: Subhash Chandra Garg: Don't vacillate on a regulatory framework for crypto assets These are not small amounts and it is too late for a crypto ban. At least stablecoins need legal recognition (and rules). Sure, it could be argued that UPI already eases payments and that the central bank's e-rupee can serve the smart-money functions of crypto. But investors have voted with their wallets for private tokens. In this scenario, we need action of the kind taken by our regulator of capital markets, Sebi, to make the market for equity derivatives safer for investors. Sebi must now join hands with the government and central bank to fill the crypto vacuum before retail investors burn their fingers. Also read: Stablecoins are on the rise. Bond investors should pay attention. Garg has proposed mandatory licensing, transparency, insistence on Indian jurisdiction and the functions of exchanges, brokers, aggregators, custodians and other entities kept apart as the four cornerstones of a crypto regulatory framework. That would be a good start.
