Key Highlights:
- The GENIUS Act is progressing to the Senate floor to create regulations for stablecoins.
- Crypto organizations are urging lawmakers to keep the bill focused, as unrelated amendments could cause delays.
- Citigroup predicts the stablecoin market could expand to $2 trillion by 2030.
Crypto industry representatives are urging US legislators to move forward with a pivotal stablecoin bill as it approaches the Senate this week, cautioning that unrelated amendments could obstruct the much-anticipated regulatory guidance.
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is set for discussion in the Senate, having received procedural approval on May 19.
This legislation aims to outline clear rules for the issuance and regulation of stablecoins and is expected to garner enough support to progress to the House.
Crypto Groups Call for Priority on Stablecoin Oversight Bill
Several advocacy groups, including the Blockchain Association, Crypto Council for Innovation, Digital Chamber, and DeFi Education Fund, released a united statement on June 2, urging lawmakers to emphasize the bill’s “focused and thorough approach to stablecoin regulation” as it navigates potential amendments.
After initial reluctance from Democrats over former President Donald Trump’s crypto connections, including a family-backed stablecoin project, support for the bill has gained traction in recent weeks.
Nevertheless, the bill now encounters a challenge: a proposed amendment concerning credit card fees.
Senators Dick Durbin and Roger Marshall are advocating for the inclusion of the Credit Card Competition Act (CCCA), aimed at compelling networks such as Visa and Mastercard to compete on merchant fees.
This proposal is heavily opposed by banks and card companies, who argue that it constitutes government overreach.
Crypto supporters are concerned that the addition of this contentious amendment could hinder progress.
James Czerniawski from Americans for Prosperity labeled the proposal as “unacceptable,” stressing that it could negatively impact consumer access to credit.
Other suggested amendments include stricter disclosure rules for government officials who hold stablecoins, limitations on foreign and Chinese investors in stablecoin issuers, measures related to the Trump family’s crypto involvement, and updates to the Bank Secrecy Act and Anti-Money Laundering regulations.
If no agreement is reached on these amendments, delays could result in final Senate approval being pushed to the week of June 9, as reported by journalist Eleanor Terrett.
Projected Surge of Stablecoin Market to $2 Trillion by 2030
Citigroup anticipates significant growth for the stablecoin market, forecasting a rise from nearly $240 billion today to over $2 trillion by 2030.
This growth is anticipated to be propelled by regulatory advancements and increased interest from both financial institutions and the public sector.
According to Citigroup, the supply of stablecoins could expand to $1.6 trillion by the decade’s end under a baseline scenario, while a more positive scenario forecasts it could reach $3.7 trillion.
Recently, the number of active stablecoin wallets has surged by over 50% in the past year, highlighting increasing adoption and participation within the digital asset landscape.
The article “Crypto Lobby Pushes for Swift Passage of Stablecoin Bill as it Reaches Senate Floor” appeared first on Cryptonews.
