Senate’s Updated Stablecoin Bill Does Not Address Trump’s Crypto Interests
The U.S. Senate's stablecoin legislation draft has undergone changes that may facilitate Democratic support, though consumer advocates remain critical.
- The bill aims to establish oversight for stablecoin issuers and gained bipartisan approval in March.
- It faced opposition from Democrats due to concerns over President Trump's crypto interests and potential issuance by tech firms like Meta and X.
- Proponents claim significant victories were achieved during negotiations, but unresolved issues remain regarding a cloture vote to advance the bill.
The latest draft includes:
- A provision preventing public companies not primarily engaged in financial activities from issuing payment stablecoins without unanimous approval from a newly formed Stablecoin Certification Review Committee.
- Critics highlight that this regulation applies only to public companies, leaving private firms like X and TikTok exempt.
- Concerns persist about loopholes allowing public companies to indirectly benefit from non-public entities.
Mark Hays of Americans for Financial Reform criticized the bill as inadequate for consumer protection and stressed the importance of thoughtful policy-making amid industry pressures.
Bo Hines, an advisor to Trump on crypto, asserted there is no conflict regarding the president's business interests and expressed confidence in achieving stablecoin legislation before the August recess.