In brief
- Senate Majority Leader John Thune signaled openness to Democratic amendments on the GENIUS Act ahead of a key floor vote.
- The move comes after nine Senate Democrats issued a joint statement opposing the bill without stronger safeguards.
- Republicans need at least seven Democratic votes to advance the legislation, which would create a federal framework for stablecoins.
Senate Majority Leader John Thune (R-SD) has acknowledged that Republicans would need to seek a more open stance with Democrats if the party hopes to advance the U.S.’s first comprehensive federal regulatory framework for dollar-pegged digital assets.
With a full floor vote looming on the GENIUS Act before Congress’ August recess, pressure for a compromise is mounting as partisan tensions surrounding the landmark legislation threaten to boil over.
“Changes can be made on the floor for sure,” Thune said, speaking to reporters from Congress on Monday, as first quoted by Politico. Thune said he’s “waiting to see what it is [Democrats] are asking for.”
Thune’s gesture shows the GOP is dialing back and slowing down from Sunday, when he initiated expedited procedures to advance the bill.
Republican leaders had hoped to hold a vote as early as Thursday this week.
But those plans hit a roadblock after nine Senate Democrats, including four previously open to the bill in committee, released an opposing statement a day before it was expedited.
The Democrats cited the need to add “stronger provisions” on key issues, including anti-money laundering, foreign issuers, national security, financial safety, and accountability.
Despite holding 53 Senate seats, the Republican caucus needs to secure at least seven Democratic votes to overcome the last hurdles for passage.
What’s at stake?
The GENIUS Act allows nonbank stablecoin issuers to operate in the U.S. economy, providing key protections for consumers using the technology for daily needs.
A stablecoin is a digital currency designed to maintain a consistent value by pegging it to a fixed asset like the U.S. dollar. Stablecoins, unlike Bitcoin, offer predictability for daily transactions by backing their value with cash or other stable assets.
With it, banks and non-bank institutions could issue stablecoins if they hold 1:1 reserves in high-quality liquid assets. House lawmakers, meanwhile, have proposed more restrictive reserve requirements in their competing STABLE Act.
If signed into law, the bill would address a regulatory gap that has persisted for years as stablecoins grew to over $240 billion in market capitalization, data from CoinGecko shows.
Edited by Sebastian Sinclair
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