Stablecoin Legislation Becomes Top Priority for Senate Subcommittee
The Senate Banking Committee’s Digital Asset Subcommittee held its first hearing, focusing on stablecoins. Key points include:
- Cynthia Lummis, the subcommittee chair, identified stablecoin legislation as a top priority.
- A market structure bill is planned to follow the stablecoin discussions.
- Former CFTC Chair Timothy Massad advised lawmakers to prioritize stablecoin regulations before addressing market structure issues.
- Lummis’ GENIUS Act requires payment stablecoins to be issued by registered entities and fully backed by fiat or secure reserves.
- Consensus exists among industry members and lawmakers on general terms, but specific details remain contentious.
- Senator Mark Warner called for stricter KYC requirements due to concerns over regulatory issues.
- Further hearings with the full Senate Banking Committee may occur if the GENIUS bill advances, though timelines are uncertain.