Crypto Industry Secures Legislative Victory with GENIUS Act
The recently passed GENIUS Act has been declared “settled law” by industry leaders, asserting that the lengthy lobbying efforts for a stablecoin regulatory framework have culminated in a significant legislative victory. “There was robust debate on the Hill, and the way this bill came out was a compromise from policymakers. So we really shouldn’t be trying to go back and reopen that,” stated Summer Mersinger, CEO of the Blockchain Association, a prominent industry trade group, reports 24brussels.
Paige Pidano Paridon, executive vice president at the Bank Policy Institute, emphasized a collaborative approach, indicating that large banks are interested in developing “clear, fair rules” alongside the crypto sector. “This isn’t bank vs. crypto — it’s about working together to create rules of the road that apply equally to everyone while protecting consumers and the financial system,” she explained. “America’s financial system is built on trust and when your average consumer can’t distinguish between what’s safe and what’s not, risk increases, and American competitiveness suffers.”
As the Securities and Exchange Commission (SEC) considers requests from the crypto industry to “tokenize” U.S. stocks, traditional financial entities are advocating for a cautious approach. Tokenization, which involves transferring assets onto blockchain technology akin to that used for cryptocurrencies, is seen by proponents as a way to enhance the speed and reduce the costs of stock trading globally. However, institutions like the Securities Industry and Financial Markets Association and Citadel Securities contend that tokenized stocks should adhere to the same regulations as their conventional counterparts.
This impending clash over tokenization is poised to shape upcoming discussions on a market structure bill in Congress, which would delineate oversight responsibilities between market regulators. Senate Republicans have pledged to pass such legislation this fall, aiming to regulate the rapidly evolving crypto market.
