The fourth day of Crypto Week revealed persistent divisions among US lawmakers over crucial legislation that will define the regulatory framework for digital assets.
Key bills like the Clarity Act, the GENIUS stablecoin legislation, and the Anti-CBDC Surveillance State Act faced delays due to partisan disagreements and bottlenecks on proposed amendments. These include efforts to prevent government officials from engaging in cryptocurrency trading.
During Thursday’s session, the House of Representatives debated topics surrounding consumer protections, measures against money laundering, the introduction of a central bank digital currency, banking safeguards, and rules to prevent conflicts of interest within the executive branch.
Representative French Hill emphasized the importance of the GENIUS stablecoin bill, labeling it a priority across multiple congressional terms and highlighting the inclusion of robust consumer protection and anti-money laundering clauses aimed at maintaining US competitiveness.
Representative French Hill urges Congress to approve crypto regulatory measures. Source: US House of Representatives
Democratic Representative Maxine Waters, known for her criticism of President Trump and his family’s crypto involvement, contended that the proposed bills fail to tackle conflicts of interest associated with the President and Vice President’s crypto ventures. She pointed out that while members of Congress and other officials are barred from issuing their own stablecoins, the executive branch remains exempt.
This bill states elected representatives cannot create their own stablecoins, yet the President and Vice President can still operate crypto businesses.
This exemption has become a significant sticking point for Democrats, threatening their initial support for the comprehensive crypto oversight. A decline in Democratic backing might jeopardize these bills or result in weakened regulatory provisions unfavorable to the crypto industry.
Representative Maxine Waters highlights missing conflict of interest protections in crypto bills. Source: US House of Representatives
Related: CLARITY Act isn’t perfect, but it’s the bill US Congress must pass this summer
Additional Points Raised by Lawmakers
Beyond limiting executive involvement, other concerns addressed by legislators included national security and financial stability aspects. Senator Adam Schiff’s COIN Act specifically targets income and disclosure issues for officials.
Waters noted that while stablecoin reserves generally include cash and short-term Treasury securities, the bill permits uninsured deposits. This raises worries about financial system risks, including the potential for bank runs shifting bailout costs to taxpayers.
Magazine: Bitcoin vs stablecoins showdown looms as GENIUS Act nears
