Senator Ruben Gallego of Arizona, a Democrat, broke ranks with his party to support the GENIUS Act in a Senate Banking Committee hearing. The bill, backed by the cryptocurrency industry, aims to pave the way for the issuance of stablecoins, a form of digital currency. The vote to advance the bill was celebrated by the crypto community, seen as a victory for an industry that has been increasing its influence in Congress.
Gallego, along with other lawmakers supported by super PACs funded by crypto companies, are driving legislation to benefit the industry. This includes repealing a Biden-era rule requiring tax reporting by crypto firms and pushing the GENIUS Act forward. The bill aims to regulate stablecoins by setting rules for issuers, but critics say it is too lenient and poses risks to consumers.
The crypto industry’s political influence has grown significantly, with millions of dollars spent on lobbying efforts and funding for pro-crypto congressional candidates. As a result, key pieces of legislation are moving through Congress with bipartisan support, despite concerns raised by some Democrats about potential conflicts of interest.
The bill’s advancement and broader efforts to shape the regulatory landscape come as US regulators ease enforcement actions against crypto firms. The industry’s political clout is likely to continue to grow as legislation related to stablecoins and market structure progresses, influencing how digital assets are treated and regulated in the US.
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