Senators Revamp GENIUS Act as Thune Pushes for May Floor Vote
Adjustments aimed at winning broader support from Democrats
Welcome to the Friday edition of the Crypto in America newsletter! Pro-crypto senators are betting that the updated GENIUS Act will bring more Democrats on board as stablecoin regulation moves closer to a vote. Plus: a reported multibillion-dollar acquisition attempt in the stablecoin space—and a look at the week’s biggest headlines.
On Thursday afternoon, Republican Senators Bill Hagerty (R-TN), Tim Scott (R-SC) and Cynthia Lummis (R-WY) rolled out an updated version of the GENIUS Act, a key bill that would establish a formal regulatory framework for payment stablecoins.
The revised text, obtained by Politico, incorporates updates discussed during the Senate Banking Committee’s March markup, along with input from ongoing conversations among lawmakers. Notably, it adds more robust consumer protections and anti-money laundering provisions—adjustments aimed at winning over hesitant Democrats and building broader bipartisan support.
Senate Majority Leader John Thune (R-SD) is pushing to bring the bill to the floor in the coming weeks, and Republicans passed a motion Thursday to fast-track the process. While it remains uncertain whether enough Democrats will support it to clear the full chamber, Senators Hagerty, Scott, and Lummis are hopeful that the latest revisions will help sway votes.
Meanwhile, as Congress works on stablecoin regulation, competition for influence in the private sector is heating up. Blockchain firm Ripple recently made a $5 billion bid to acquire Circle, the company behind USDC, according to Bloomberg. However, Circle reportedly rejected the offer, deeming it too low.
Ripple launched its own stablecoin, RLUSD, late last year.
Weekly Recap
ICYMI. Here are some of the biggest news stories this week from the intersection of Washington and Web3:
Coinbase is urging the U.S. Supreme Court to take up a case that could fundamentally reshape digital privacy laws in America. The exchange filed an amicus brief in Harper v. O'Donnell on Wednesday morning, asking the Court to reconsider how the Fourth Amendment applies to digital financial data, arguing that users don’t surrender their right to privacy simply by storing information with a third party.
Wall Street asset manager Charles Schwab is looking to offer spot crypto trading of Bitcoin and Ethereum within the next 12 months, while Morgan Stanley plans to offer crypto trading to its E-Trade clients.
Crypto research and policy forum Medici Network has named former Messari and Wall Street executive Maartje Bus as its new president amid rising institutional interest in digital assets.
Arizona has become the first U.S. state to pass a Bitcoin reserve bill, permitting up to 10% of public funds to be invested in digital assets such as Bitcoin. The legislation is now being reviewed by Democratic Governor Katie Hobbs' desk and could be signed, or vetoed, by her as early as next week.
Mastercard has announced a partnership with OKX and Nuvei to enable merchants to accept payments in stablecoins, citing growing global regulatory clarity as a key driver.
According to a report from Bloomberg, blockchain payments firm Ripple made a $5 billion bid to acquire U.S. stablecoin giant Circle, but the latter rejected the offer, deeming it too low.
A coalition of around 30 crypto firms, led by the advocacy group Crypto Council for Innovation, is urging the Securities and Exchange Commission to clarify regulations on digital asset staking. The letter was signed by the likes of Andreessen Horowitz, Kraken, Paradigm, Consensys, Blockchain Association and more.
More than 300 crypto industry participants—including high-profile figures like Gemini co-founders Cameron and Tyler Winklevoss—have signed a petition by the DeFi Education Fund urging White House Crypto and AI Czar David Sacks to defend software developers facing scrutiny from the Department of Justice.
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