Latest news with #SenateBankingCommittee
New York Times
2 days ago
- Business
- New York Times
‘Bellwether of Risks': What ‘Buy Now, Pay Later' Defaults Say About the Consumer
'Buy now, pay never' For months, economists have warned that consumers faced an affordability crunch, a prediction supported by a lousy first quarter G.D.P. report. Now, new data suggests that there's a credit crisis brewing: a rising number of defaults for 'buy now, pay later' loans, the typically zero-interest debt used for things like sneaker purchases and DoorDash deliveries. In the Biden era, the Consumer Financial Protection Bureau warned that pay-later customers would be especially vulnerable if the economy worsened, and called for measures to safeguard them. That's in jeopardy as President Trump has essentially tried to dismantle the watchdog, Grady McGregor reports. The context: Pay-later borrowing in the United States has soared rapidly, with American consumers taking out more than $75 billion worth of these loans in 2023. But as household finances deteriorate, buy-now-pay-never fears have grown; late payments were on the rise over the past year. Democrats on the Senate Banking Committee plan to intervene, some with knowledge of the matter told DealBook. Concerned about rising defaults, they intend to call for more oversight of pay-later lenders, including pushing for more robust reporting on their loan losses. The consumer bureau did not respond to a request for comment about the Democrats' plan. Pay-later lenders see no reason for alarm. That's despite Klarna, one of the biggest providers, reporting a 17 percent year-on-year rise in credit losses this month. The company — which paused its I.P.O. plans amid tariff-related market volatility — acknowledged that its losses were growing, but said that its default rate rose only marginally and represented a tiny share of its total loans. 'There's nothing troubling or worrisome from this data,' Clare Nordstrom, a spokeswoman, told DealBook. Want all of The Times? Subscribe.
Yahoo
3 days ago
- Business
- Yahoo
Vance urges crypto industry to expand involvement in politics after 2024 wins
Vice President Vance called on the crypto industry Wednesday to continue expanding its involvement in politics, after spending more than $200 million to boost crypto-friendly candidates in the 2024 election. Speaking at a Bitcoin conference in Las Vegas, Vance acknowledged the industry's efforts in the previous election, underscoring its role in the Ohio Senate race that unseated crypto-skeptical Former Sen. Sherrod Brown (D). 'Part of the reason that I'm standing here, part of the reason that Bernie Moreno defeated Sherrod Brown in the Senate campaign last year, is because you guys got organized and got involved in American politics,' the vice president said. A crypto-aligned super PAC poured more than $40 million into the race between Brown and Moreno, securing a key win with the ouster of the former chair of the Senate Banking Committee. 'I'm grateful to you for that, but there's a lesson to take from that experience, which is that unless you guys get involved in politics, politics is going to ignore this industry,' Vance added. 'Now you took a big step in 2024, and I'll tell you, every victory that we win, it's only a provisional victory.' 'Take the momentum of your political involvement in 2024 and carry it forward to 2026 and beyond,' he added. 'Don't ignore politics, because I guarantee you, my friends, politics is not going to ignore this community, not now and not in the future.' The crypto industry already appears poised to keep up its efforts in future elections. Pro-crypto super PAC Fairshake said in January that it had more than $116 million in cash on hand for the 2026 midterm elections. Its widespread spending in the 2024 election is viewed as a key factor in moving the needle on crypto in Congress. While President Trump has fully embraced the industry in his second term, he will need lawmakers to get his legislative agenda across the finish line. The administration has prioritized two key crypto bills long sought by the industry — one creating a regulatory framework for payment stablecoins and another divvying up regulation of the full digital assets market between two U.S. regulators. Stablecoin legislation has gained some ground in the Senate, clearing an early procedural hurdle this month, although it still has a way to go before final passage. Market structure legislation, likely to be a more complicated effort, has yet to be formally introduced. Vance on Wednesday underscored the administration's focus on these two pieces of legislation. 'We're optimistic that the Senate is able to move quickly on passing a clean GENIUS Act, and for the House to follow up and do the same,' he said, referring to the Senate's stablecoin bill. 'And of course, once that happens, our great President Trump will sign it into law the minute it comes across his desk.' 'Now when, when that's happened, when the administration will then fully shift to our third priority, which is to enact a transparent and tailored regulatory framework for digital assets, one that's pro innovation and fully incorporates crypto into the mainstream economy,' he added. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Axios
4 days ago
- Business
- Axios
Republican group boosts its senators at Bitcoin 2025
A group linked to the Senate GOP's super PAC is running a series of ads in Las Vegas during the Bitcoin 2025 conference, while major politicians descend on the city to address fans of the oldest cryptocurrency. Why it matters: It reflects a belief by the GOP that cryptocurrency is an issue that they can use to create a wedge with the Democrats, who, on balance, have been more reluctant to support the digital asset industry. What they're saying: "Senate Republicans stood up for crypto by working to pass the GENIUS Act, helping ensure America remains a global leader in crypto," One Nation Communications Director Chris Gustafson said in a statement. The GENIUS Act would create a clear regulatory pathway for issuing stablecoins in the U.S. It recently passed a vote to move forward on the Senate floor. The big picture: The crypto industry delivered massive financial support for candidates in both parties, but one of its biggest wins came from helping Bernie Moreno unseat Sen. Sherrod Brown (D-Ohio), the chair of the Senate Banking Committee. Vice President Vance signaled the administration's political alignment with Bitcoiners on Wednesday by speaking at the same conference, urging attendees to keep up the political pressure. How it works: Gustafson told Axios that One Nation spent in the high five-figure range, to educate voters at Bitcoin 2025 about how Republican Senators have been supportive of their industry.
The Hill
4 days ago
- Business
- The Hill
Vance urges crypto industry to expand involvement in politics after 2024 wins
Vice President Vance called on the crypto industry Wednesday to continue expanding its involvement in politics, after spending more than $200 million to boost crypto-friendly candidates in the 2024 election. Speaking at a Bitcoin conference in Las Vegas, Vance acknowledged the industry's efforts in the previous election, underscoring its role in the Ohio Senate race that unseated crypto-skeptical Democratic Sen. Sherrod Brown. 'Part of the reason that I'm standing here, part of the reason that Bernie Moreno defeated Sherrod Brown in the Senate campaign last year, is because you guys got organized and got involved in American politics,' the vice president said. A crypto-aligned super PAC poured more than $40 million into the race between Brown and Moreno, securing a key win with the ouster of the former chair of the Senate Banking Committee. 'I'm grateful to you for that, but there's a lesson to take from that experience, which is that unless you guys get involved in politics, politics is going to ignore this industry,' Vance added. 'Now you took a big step in 2024, and I'll tell you, every victory that we win, it's only a provisional victory.' 'Take the momentum of your political involvement in 2024 and carry it forward to 2026 and beyond,' he added. 'Don't ignore politics, because I guarantee you, my friends, politics is not going to ignore this community, not now and not in the future.' The crypto industry already appears poised to keep up its efforts in future elections. Pro-crypto super PAC Fairshake said in January that it had more than $116 million in cash on hand for the 2026 midterm elections. Its widespread spending in the 2024 election is viewed as a key factor in moving the needle on crypto in Congress. While President Trump has fully embraced the industry in his second term, he will need lawmakers to get his legislative agenda across the finish line. The administration has prioritized two key crypto bills long sought by the industry — one creating a regulatory framework for payment stablecoins and another divvying up regulation of the full digital assets market between two U.S. regulators. Stablecoin legislation has gained some ground in the Senate, clearing an early procedural hurdle this month, although it still has a way to go before final passage. Market structure legislation, likely to be a more complicated effort, has yet to be formally introduced. Vance on Wednesday underscored the administration's focus on these two pieces of legislation. 'We're optimistic that the Senate is able to move quickly on passing a clean GENIUS Act, and for the House to follow up and do the same,' he said, referring to the Senate's stablecoin bill. 'And of course, once that happens, our great President Trump will sign it into law the minute it comes across his desk.' 'Now when, when that's happened, when the administration will then fully shift to our third priority, which is to enact a transparent and tailored regulatory framework for digital assets, one that's pro innovation and fully incorporates crypto into the mainstream economy,' he added.
Yahoo
4 days ago
- Business
- Yahoo
Sen. Lummis on Push for Stablecoin Bill: ‘I Had No Idea How Hard This Was Going to Be'
LAS VEGAS, Nevada — The U.S. Senate seems to be getting close to passing its landmark stablecoin bill, the GENIUS Act — a battle its champion Cynthia Lummis (R-Wyo.) said has been incredibly hard-fought. 'It has been extremely difficult,' Lummis said during a fireside chat with Coinbase's Chief Legal Officer Paul Grewal at Bitcoin 2025 in Las Vegas on Tuesday. 'I had no idea how hard this was going to be.' Last week, the Senate voted to advance the bill, easily clearing the 60-vote threshold required to kick the bill to its last discussion phase before the final vote to pass it out of the body entirely. An earlier attempt failed on a bipartisan basis after Senate Democrats, led by long-time crypto sceptic Elizabeth Warren (D-Mass.), as well as several Republicans including Missouri's Josh Hawley and Kentucky's Rand Paul, voted against cloture. Lummis, whose staff (along with that of the bill's co-sponsor, Kirsten Gillibrand (D-New York)) has played a key role in the behind-the-scenes negotiations to get the GENIUS Act passed, said that she thinks the Senate has reached a final deal. If the bill passes, both Lummis and Sen. Bill Hagerty (R-Tenn.), the bill's sponsor, claimed that it would be the first piece of legislation passed out of the Senate Banking Committee in eight years. 'It's taken a tremendous amount of work,' Hagerty said, speaking on a separate panel discussion on Tuesday. Hagerty added that long-time crypto skeptic Sen. Elizabeth Warren (D-Mass.), the bill's main opponent, made a concerted effort to drag out the proceedings in the hopes of stalling the legislation's progress. Hagerty said that the bill, once passed, would be the most bipartisan piece of legislation to pass through the Senate Banking Committee in over a decade. While the bill's supporters see that as a win, they're also frustrated with the difficulty in getting legislation in general passed through the committee. 'We don't have the muscle memory anymore to legislate. That's our job,' Lummis said. 'It really is very frustrating, very exhausting, and you have to keep your creativity, your sense of humor and your patience about you.' Lummis added that she was 'very hopeful' the Senate could work behind-the-scenes with the House on a market structure bill, noting that the House has the advantage of 'muscle memory' (following its passage of FIT21 last year) over the Senate when it comes to the next hurdle of crypto legislation. Sign in to access your portfolio
