Latest news with #US-dollar-pegged
The Advertiser
5 hours ago
- Business
- The Advertiser
US passes stablecoin bill in milestone for crypto
The US Senate has passed a bill to create a regulatory framework for US-dollar-pegged cryptocurrency tokens known as stablecoins, in a watershed moment for the digital asset industry. The bill, dubbed the GENIUS Act, received bipartisan support, with several Democrats joining most Republicans to back the proposed federal rules. It passed 68-30. The House of Representatives, which is controlled by Republicans, needs to pass its version of the bill before it heads to President Donald Trump's desk for approval. "It is a major milestone," said Andrew Olmem, a managing partner at law firm Mayer Brown and the former deputy director of the National Economic Council during Trump's first term. "It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry." Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. If signed into law, the stablecoin bill would require tokens to be backed by liquid assets - such as US dollars and short-term Treasury bills - and for issuers to publicly disclose the composition of their reserves on a monthly basis. The crypto industry has long pushed for lawmakers to pass legislation creating rules for digital assets, arguing that a clear framework could enable stablecoins to become more widely used. The sector spent more than $US119 million backing pro-crypto congressional candidates in last year's elections and had tried to paint the issue as bipartisan. The House of Representatives passed a stablecoin bill last year but the Senate - in which Democrats held the majority at the time - did not take that bill up, and it died. Trump has sought to broadly overhaul US cryptocurrency policies after courting cash from the industry during his presidential campaign. Most Democrats opposed the bill. They raised concerns that the measure does little to address Trump's personal financial interests in the crypto space. Bo Hines, who leads Trump's Council of Advisers on Digital Assets, has said the White House wants a stablecoin bill passed before August. Trump's crypto ventures include a meme coin called $TRUMP, launched in January, and a business called World Liberty Financial, a crypto company owned partly by the president. The White House has said there are no conflicts of interest present for Trump and that his assets are in a trust managed by his children. Other Democrats expressed concern that the bill would not prevent big tech companies from issuing their own private stablecoins, and argued that legislation needed stronger anti-money laundering protections and prohibitions on foreign stablecoin issuers. The bill could face further changes in the House of Representatives. In a statement, the Conference of State Bank Supervisors called for "critical changes" to mitigate financial stability risks. "CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors," said Brandon Milhorn, president and CEO of the Conference of State Bank Supervisors, in a statement. The US Senate has passed a bill to create a regulatory framework for US-dollar-pegged cryptocurrency tokens known as stablecoins, in a watershed moment for the digital asset industry. The bill, dubbed the GENIUS Act, received bipartisan support, with several Democrats joining most Republicans to back the proposed federal rules. It passed 68-30. The House of Representatives, which is controlled by Republicans, needs to pass its version of the bill before it heads to President Donald Trump's desk for approval. "It is a major milestone," said Andrew Olmem, a managing partner at law firm Mayer Brown and the former deputy director of the National Economic Council during Trump's first term. "It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry." Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. If signed into law, the stablecoin bill would require tokens to be backed by liquid assets - such as US dollars and short-term Treasury bills - and for issuers to publicly disclose the composition of their reserves on a monthly basis. The crypto industry has long pushed for lawmakers to pass legislation creating rules for digital assets, arguing that a clear framework could enable stablecoins to become more widely used. The sector spent more than $US119 million backing pro-crypto congressional candidates in last year's elections and had tried to paint the issue as bipartisan. The House of Representatives passed a stablecoin bill last year but the Senate - in which Democrats held the majority at the time - did not take that bill up, and it died. Trump has sought to broadly overhaul US cryptocurrency policies after courting cash from the industry during his presidential campaign. Most Democrats opposed the bill. They raised concerns that the measure does little to address Trump's personal financial interests in the crypto space. Bo Hines, who leads Trump's Council of Advisers on Digital Assets, has said the White House wants a stablecoin bill passed before August. Trump's crypto ventures include a meme coin called $TRUMP, launched in January, and a business called World Liberty Financial, a crypto company owned partly by the president. The White House has said there are no conflicts of interest present for Trump and that his assets are in a trust managed by his children. Other Democrats expressed concern that the bill would not prevent big tech companies from issuing their own private stablecoins, and argued that legislation needed stronger anti-money laundering protections and prohibitions on foreign stablecoin issuers. The bill could face further changes in the House of Representatives. In a statement, the Conference of State Bank Supervisors called for "critical changes" to mitigate financial stability risks. "CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors," said Brandon Milhorn, president and CEO of the Conference of State Bank Supervisors, in a statement. The US Senate has passed a bill to create a regulatory framework for US-dollar-pegged cryptocurrency tokens known as stablecoins, in a watershed moment for the digital asset industry. The bill, dubbed the GENIUS Act, received bipartisan support, with several Democrats joining most Republicans to back the proposed federal rules. It passed 68-30. The House of Representatives, which is controlled by Republicans, needs to pass its version of the bill before it heads to President Donald Trump's desk for approval. "It is a major milestone," said Andrew Olmem, a managing partner at law firm Mayer Brown and the former deputy director of the National Economic Council during Trump's first term. "It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry." Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. If signed into law, the stablecoin bill would require tokens to be backed by liquid assets - such as US dollars and short-term Treasury bills - and for issuers to publicly disclose the composition of their reserves on a monthly basis. The crypto industry has long pushed for lawmakers to pass legislation creating rules for digital assets, arguing that a clear framework could enable stablecoins to become more widely used. The sector spent more than $US119 million backing pro-crypto congressional candidates in last year's elections and had tried to paint the issue as bipartisan. The House of Representatives passed a stablecoin bill last year but the Senate - in which Democrats held the majority at the time - did not take that bill up, and it died. Trump has sought to broadly overhaul US cryptocurrency policies after courting cash from the industry during his presidential campaign. Most Democrats opposed the bill. They raised concerns that the measure does little to address Trump's personal financial interests in the crypto space. Bo Hines, who leads Trump's Council of Advisers on Digital Assets, has said the White House wants a stablecoin bill passed before August. Trump's crypto ventures include a meme coin called $TRUMP, launched in January, and a business called World Liberty Financial, a crypto company owned partly by the president. The White House has said there are no conflicts of interest present for Trump and that his assets are in a trust managed by his children. Other Democrats expressed concern that the bill would not prevent big tech companies from issuing their own private stablecoins, and argued that legislation needed stronger anti-money laundering protections and prohibitions on foreign stablecoin issuers. The bill could face further changes in the House of Representatives. In a statement, the Conference of State Bank Supervisors called for "critical changes" to mitigate financial stability risks. "CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors," said Brandon Milhorn, president and CEO of the Conference of State Bank Supervisors, in a statement. The US Senate has passed a bill to create a regulatory framework for US-dollar-pegged cryptocurrency tokens known as stablecoins, in a watershed moment for the digital asset industry. The bill, dubbed the GENIUS Act, received bipartisan support, with several Democrats joining most Republicans to back the proposed federal rules. It passed 68-30. The House of Representatives, which is controlled by Republicans, needs to pass its version of the bill before it heads to President Donald Trump's desk for approval. "It is a major milestone," said Andrew Olmem, a managing partner at law firm Mayer Brown and the former deputy director of the National Economic Council during Trump's first term. "It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry." Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. If signed into law, the stablecoin bill would require tokens to be backed by liquid assets - such as US dollars and short-term Treasury bills - and for issuers to publicly disclose the composition of their reserves on a monthly basis. The crypto industry has long pushed for lawmakers to pass legislation creating rules for digital assets, arguing that a clear framework could enable stablecoins to become more widely used. The sector spent more than $US119 million backing pro-crypto congressional candidates in last year's elections and had tried to paint the issue as bipartisan. The House of Representatives passed a stablecoin bill last year but the Senate - in which Democrats held the majority at the time - did not take that bill up, and it died. Trump has sought to broadly overhaul US cryptocurrency policies after courting cash from the industry during his presidential campaign. Most Democrats opposed the bill. They raised concerns that the measure does little to address Trump's personal financial interests in the crypto space. Bo Hines, who leads Trump's Council of Advisers on Digital Assets, has said the White House wants a stablecoin bill passed before August. Trump's crypto ventures include a meme coin called $TRUMP, launched in January, and a business called World Liberty Financial, a crypto company owned partly by the president. The White House has said there are no conflicts of interest present for Trump and that his assets are in a trust managed by his children. Other Democrats expressed concern that the bill would not prevent big tech companies from issuing their own private stablecoins, and argued that legislation needed stronger anti-money laundering protections and prohibitions on foreign stablecoin issuers. The bill could face further changes in the House of Representatives. In a statement, the Conference of State Bank Supervisors called for "critical changes" to mitigate financial stability risks. "CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors," said Brandon Milhorn, president and CEO of the Conference of State Bank Supervisors, in a statement.
New York Post
9 hours ago
- Business
- New York Post
US Senate passes stablecoin bill in ‘major milestone' for crypto industry
The Senate on Tuesday passed a bill to create a regulatory framework for US-dollar-pegged cryptocurrency tokens known as stablecoins, in a watershed moment for the digital asset industry. The bill, dubbed the GENIUS Act, received bipartisan support, with several Democrats joining most Republicans to back the proposed federal rules. The House of Representatives, which is controlled by Republicans, needs to pass its version of the bill before it heads to President Trump's desk for approval. 'It is a major milestone,' said Andrew Olmem, a managing partner at law firm Mayer Brown and the former deputy director of the National Economic Council during Trump's first term. 'It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry.' Advertisement 3 The GENIUS Act, which passed the Senate with bipartisan support, is headed to the House of Representatives. iQoncept – Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say that they could be used to send payments instantly. If signed into law, the stablecoin bill would require tokens to be backed by liquid assets – such as US dollars and short-term Treasury bills – and for issuers to publicly disclose the composition of their reserves on a monthly basis. Advertisement The crypto industry has long pushed for lawmakers to pass legislation creating rules for digital assets, arguing that a clear framework could enable stablecoins to become more widely used. The sector spent more than $119 million backing pro-crypto congressional candidates in last year's elections and had tried to paint the issue as bipartisan. The House passed a stablecoin bill last year but the Senate – in which Democrats held the majority at the time – did not take that bill up, and it died. 3 President Trump courted the crypto industry during last year's election. REUTERS Trump has sought to broadly overhaul US cryptocurrency policies after courting cash from the industry during his presidential campaign. Advertisement Bo Hines, who leads Trump's Council of Advisers on Digital Assets, has said the White House wants a stablecoin bill passed before August. Tensions on Capitol Hill over Trump's various crypto ventures at one point threatened to derail the digital asset sector's hope of legislation this year as Democrats have grown increasingly frustrated with Trump and his family members promoting their personal crypto projects. 3 Democrats are concerned that the bill would not bar big tech companies from issuing their own private stablecoins and argue it needs stronger anti-money laundering protections. Christopher Sadowski Trump's crypto ventures include a meme coin called $TRUMP, launched in January, and a business called World Liberty Financial, a crypto company owned partly by the president. Advertisement The White House has said there are no conflicts of interest present for Trump and that his assets are in a trust managed by his children. Other Democrats expressed concern that the bill would not prevent big tech companies from issuing their own private stablecoins, and argued that legislation needed stronger anti-money laundering protections and prohibitions on foreign stablecoin issuers. 'A bill that turbocharges the stablecoin market, while facilitating the president's corruption and undermining national security, financial stability, and consumer protection is worse than no bill at all,' said Sen. Elizabeth Warren, D-Mass., in remarks on the Senate floor in May.
Business Times
10 hours ago
- Business
- Business Times
US Senate passes stablecoin bill in win for crypto, Trump
[WASHINGTON] The US Senate on Tuesday (Jun 17) passed a bill to create a regulatory framework for US-dollar-pegged cryptocurrency tokens known as stablecoins, in a watershed moment for the digital asset industry. The bill, dubbed the Genius Act, received bipartisan support, with several Democrats joining most Republicans to back the proposed federal rules. It passed 68-30. The House of Representatives, which is controlled by Republicans, needs to pass its version of the bill before it heads to US President Donald Trump's desk for approval. 'It is a major milestone,' said Andrew Olmem, a managing partner at law firm Mayer Brown and the former deputy director of the National Economic Council during Trump's first term. 'It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry.' Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 US dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say that they could be used to send payments instantly. If signed into law, the stablecoin bill would require tokens to be backed by liquid assets – such as US dollars and short-term Treasury bills – and for issuers to publicly disclose the composition of their reserves on a monthly basis. 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 The crypto industry has long pushed for lawmakers to pass legislation creating rules for digital assets, arguing that a clear framework could enable stablecoins to become more widely used. The sector spent more than US$119 million backing pro-crypto congressional candidates in last year's elections and had tried to paint the issue as bipartisan. The House of Representatives passed a stablecoin bill last year but the Senate – in which Democrats held the majority at the time – did not take that bill up, and it died. Trump has sought to broadly overhaul US cryptocurrency policies after courting cash from the industry during his presidential campaign. Bo Hines, who leads Trump's Council of Advisers on Digital Assets, has said the White House wants a stablecoin bill passed before August. Tensions on Capitol Hill over Trump's various crypto ventures at one point threatened to derail the digital asset sector's hope of legislation this year as Democrats have grown increasingly frustrated with Trump and his family members promoting their personal crypto projects. 'In advancing these bills, lawmakers forfeited their opportunity to confront Trump's crypto grift – the largest, most flagrant corruption in presidential history,' said Bartlett Naylor, financial policy advocate for Public Citizen, a consumer rights advocacy group. Trump's crypto ventures include a meme coin called $TRUMP, launched in January, and a business called World Liberty Financial, a crypto company owned partly by the president. The White House has said there are no conflicts of interest present for Trump and that his assets are in a trust managed by his children. Other Democrats expressed concern that the bill would not prevent big tech companies from issuing their own private stablecoins, and argued that legislation needed stronger anti-money laundering protections and prohibitions on foreign stablecoin issuers. 'A bill that turbocharges the stablecoin market, while facilitating the president's corruption and undermining national security, financial stability, and consumer protection is worse than no bill at all,' said Senator Elizabeth Warren, a Democrat, in remarks on the Senate floor in May. The bill could face further changes in the House of Representatives. In a statement, the Conference of State Bank Supervisors called for 'critical changes' to mitigate financial stability risks. 'CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors,' said Brandon Milhorn, president and CEO of the Conference of State Bank Supervisors. REUTERS
Yahoo
20-05-2025
- Business
- Yahoo
Crypto scores a victory as GENIUS Act stablecoin legislation stays alive in Senate
A bill to regulate stablecoins passed a key procedural hurdle in the Senate Monday night, paving a path for final passage of legislation pushed by the crypto industry as early as this week. The bill still faces hurdles from some Democrats, including Sen. Elizabeth Warren, who argued against the proposed legislation on the floor of the Senate Monday night. Warren argued the bill doesn't prohibit President Trump and his family from profiting off stablecoins, nor does it provide enough protections for financial system stability. Other Democrats, including Sens. Kirsten Gillibrand of New York and Angela Alsobrooks of Maryland, pulled together enough support to keep the bill going and overcome opposition from the Warren camp. Key Democrats who supported Monday's procedural vote include Sens. Mark Warner of Virginia and Ruben Gallego of Arizona. Stablecoins are cryptocurrencies pegged to other assets, such as the US dollar, but they would not be protected by any sort of deposit insurance, as bank accounts are. This bill, however, would bar stablecoin accounts from offering interest to depositors — in a win for bank lobbyists. The Trump family is already in the stablecoin business. World Liberty Financial, a new crypto startup backed by Trump and his sons, last month unveiled plans to mint its own US-dollar-pegged stablecoin in partnership with BitGo. Read more: Trump has called for a strategic bitcoin reserve. How it would work. That stablecoin was then picked as the payment vehicle for a $2 billion investment into Binance from state-owned Abu Dhabi investment firm MGX. Some Democratic opposition to the bill faded, however, as some argued that the Trump ties to crypto should not stand in the way of establishing rules around stablecoins. Some in the industry argued that without the regulations outlined in the bill, there could be a repeat of what happened in 2022 when the unregulated algorithmic stablecoin Terra Luna crashed. That wiped out $60 billion in value, including money held by American consumers, in less than 72 hours. The Senate will now debate the stablecoin bill while also giving senators the option to offer amendments. From there, the Senate would vote on those amendments and would need another 60 votes to gain cloture to proceed to a final vote on the bill. The legislation that advanced in the Senate Monday night holds stablecoin issuers to strict reserve requirements, requiring them to maintain one-to-one reserves in cash and cash equivalents. It also bans unbacked, algorithmic stablecoins. Issuers must comply with monthly public disclosures of reserves. Issuers with $50 billion or more in total issuance must submit annual audited financial statements and disclose affiliated transactions to regulators. It also includes a broad savings clause guaranteeing the application of existing federal consumer protection laws, including but not limited to the protections extended by the Consumer Financial Protection Bureau and the Federal Trade Commission. The bill also closes a loophole that could have allowed non-permitted offshore stablecoin issuers to offer their products on US-regulated exchanges and empowers the Treasury secretary to delist non-compliant foreign issuers. Foreign stablecoin issuers in the US will be subject to the same rules as domestic issuers. One current issuer based outside the country, Tether, would either need to make its entire business compliant or create a US subsidiary that is in compliance. Stablecoin issuers will also be held to bank-like standards regarding anti-money-laundering requirements, sanctions compliance, and requirements under the Bank Secrecy Act. The bill also prohibits Big Tech companies like Meta (META) and Amazon (AMZN) from issuing stablecoins unless they can meet strict criteria regarding financial risk, consumer data privacy, and fair business standards. The bill's sponsor, Sen. Bill Hagerty, has said that Citigroup estimates that a US regulatory framework for stablecoins would drive significant new demand for US Treasurys, which could make them the largest combined holders of Treasurys by 2030. Currently, if combined, all current US dollar-denominated stablecoins would be the 14th-largest sovereign holder. Some Democrats criticized that the bill still provides foreign-issued stablecoins, like Tether, multiple avenues to access US markets while evading the bill's basic regulatory requirements. They also contend that if enacted in its current form, consumers may have fewer basic protections when using stablecoins than they do when using Venmo or their bank account. 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
Yahoo
20-05-2025
- Business
- Yahoo
Crypto scores a victory as stablecoin legislation stays alive in Senate
A bill to regulate stablecoins passed a key procedural hurdle in the Senate Monday night, paving a path for final passage of legislation pushed by the crypto industry as early as this week. The bill still faces hurdles by some Democrats including Sen. Elizabeth Warren, who argued against the proposed legislation on the floor of the Senate Monday night. Warren argued the bill doesn't prohibit President Trump and his family from profiting off stablecoins, nor does it provide enough protections for financial system stability. Other Democrats, including Sen. Kirsten Gillibrand of New York and Sen. Angela Alsobrooks of Maryland, pulled together enough support to keep the bill going and overcome opposition from the Warren camp. Key Democrats who supported Monday's procedural vote include Sen. Mark Warner of Virginia and Sen. Ruben Gallego of Arizona. Stablecoins are cryptocurrencies pegged to other assets, such as the US dollar, but they would not be protected by any sort of deposit insurance — as bank accounts are. This bill, however, would bar stablecoin accounts from offering interest to depositors — in a win for bank lobbyists. The Trump family is already in the stablecoin business. World Liberty Financial, a new crypto startup backed by Trump and his sons, last month unveiled plans to mint its own US-dollar-pegged stablecoin in partnership with BitGo. That stablecoin was then picked as the payment vehicle for a $2 billion investment into Binance from state-owned Abu Dhabi investment firm MGX. Some Democratic opposition to the bill faded, however, as some argued that the Trump ties to crypto should not stand in the way of establishing rules around stablecoins. Some in the industry argued that without the regulations outlined in the bill there could be a repeat of what happened in 2022 when unregulated algorithmic stablecoin Terra Luna crashed. That wiped out $60 billion in value, including money held by American consumers, in less than 72 hours. The Senate will now debate the stablecoin bill while also giving senators the option to offer amendments. From there the Senate would vote on those amendments and would need another 60 votes to gain cloture to proceed to a final vote on the bill. The legislation that advanced in the Senate Monday night holds stablecoin issuers to strict reserve requirements, requiring them to maintain one-to-one reserves in cash and cash equivalents. It also bans unbacked, algorithmic stablecoins. Issuers must comply with monthly public disclosures of reserves. Issuers with $50 billion or more in total issuance must submit annual audited financial statements and disclose affiliated transactions to regulators. It also includes a broad savings clause guaranteeing the application of existing federal consumer protection laws, including but not limited to the protections extended by the Consumer Financial Protection Bureau and the Federal Trade Commission. The bill also closes a loophole that could have allowed non-permitted offshore stablecoin issuers to offer their products on U.S. regulated exchanges and empowers the Treasury Secretary to delist noncompliant foreign issuers. Foreign stablecoin issuers in the U.S. will be subject to the same rules as domestic issuers. One current issuer based outside the country, Tether, would either need to make their entire business compliant or create a U.S. subsidiary that is in compliance. Stablecoin issuers will also be held to bank-like standards regarding anti money-laundering requirements, sanctions compliance, and requirements under the Bank Secrecy Act. The bill also prohibits Big Tech companies like Meta and Amazon from issuing stablecoins unless they can meet strict criteria regarding financial risk, consumer data privacy, and fair business standards. The bill's sponsor, Sen. Bill Hagerty, has said that Citigroup estimates that a US regulatory framework for stablecoins would drive significant new demand for US Treasuries, which could make them the largest combined holders of Treasuries by 2030. Currently, if combined, all current U.S. dollar denominated stablecoins would be the 14th largest sovereign holder. Some Democrats criticized that the bill still provides foreign issued stablecoins, like Tether, multiple avenues to access U.S. markets while evading the bill's basic regulatory requirements. They also contend that if enacted in its current form, consumers may have fewer basic protections when using stablecoins than they do when using Venmo or their bank account. 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
