In the recent Senate Banking Committee hearing, Senator Ruben Gallego voted to advance the GENIUS Act, a bill supported by the cryptocurrency industry. The bill, if approved by the full Senate, would allow businesses to issue stablecoins and repeal a rule requiring crypto firms to report tax information to the IRS. Gallego, who received financial support from major crypto companies during his Senate race, is part of a growing group of lawmakers advancing crypto legislation.
The cryptocurrency industry has invested heavily in influencing Congress, with super PACs spending over $130 million during the 2024 campaign to support pro-crypto candidates. The success of these candidates has led to the creation of bills like the GENIUS Act, which aims to regulate stablecoins and protect consumers. However, critics argue that the bill may pose risks to customers and benefit overseas companies.
Despite concerns raised by consumer groups and some Democrats, the GENIUS Act and similar legislation have gained traction in both the Senate and House. The bills have been supported by lawmakers backed by the crypto super PACs, leading to accusations of bias in favor of industry interests. The legislation is seen as a significant victory for the crypto industry, which has faced challenges from regulators in the past.
As the bill progresses through Congress, the debate over the role of crypto in the U.S. economy and its impact on consumers continues to intensify. Lawmakers like Gallego and others are working to strike a balance between supporting innovation in the crypto industry while ensuring adequate protections for consumers and investors. The outcome of this legislative battle could shape the future of cryptocurrencies in the United States.
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