GILLIBRAND, BIPARTISAN GROUP OF SENATORS INTRODUCE LEGISLATION TO ESTABLISH STABLECOIN REGULATORY FRAMEWORK

Today, U.S. Senator Kirsten Gillibrand, together with Senators Bill Hagerty (R-TN), Tim Scott (R-SC), and Cynthia Lummis (R-WY), introduced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, legislation to establish a clear regulatory framework for payment stablecoins.

The bipartisan Guiding and Establishing National Innovation for U.S. Stablecoins Act protects consumers by requiring stablecoin issuers to maintain one-to-one reserves, prohibiting algorithmic stablecoins, and requiring issuers to comply with U.S. anti-money-laundering and sanctions rules,” said Senator Gillibrand. “Importantly, it will empower responsible innovation, maintain U.S. leadership in digital assets and blockchain technology, and keep crypto companies and jobs onshore. The future of stablecoins and cryptocurrency has strong bipartisan support. I’m proud to introduce this bill with Senators Hagerty, Lummis and Scott, and I look forward to working together to pass this important legislation.”

Dollar-denominated payment stablecoins are digital assets pegged to the U.S. dollar. They can improve transaction efficiency, expand financial inclusion, and strengthen the dollar’s supremacy as the world reserve currency by driving demand for U.S. Treasuries.

 The GENIUS Act:

  1. Defines a payment stablecoin as a digital asset used for payment or settlement that is pegged to a fixed monetary value;
  2. Establishes clear procedures for institutions seeking licenses to issue stablecoins;
  3. Implements reserve requirements and light-touch, tailored regulatory standards for stablecoin issuers;
  4. For issuers of more than $10 billion of stablecoins, applies the Federal Reserve’s regulatory framework to depository institutions and the Office of the Comptroller of the Currency’s framework for nonbank issuers;
  5. Allows for state regulation of issuers under $10 billion in market capitalization and provides a waiver process for issuers exceeding the threshold to remain state-regulated; and
  6. Establishes supervisory, examination, and enforcement regimes with clear limitations.

Full text of the GENIUS Act can be found here.

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‘Don’t need that!’ Top Republicans bicker over shutdown relief pay for troops



As the federal government shutdown rages on, Republicans in Congress have a new headache to worry about as House Speaker Mike Johnson (R-LA) clashes with Senate Majority Leader John Thune (R-SD) about whether to convene to pass an emergency extension of pay for troops.

The shutdown has no end in sight, with Democrats demanding an extension of Affordable Care Act subsidies that stabilize millions of people's insurance premiums as a condition of their votes, and Republicans refusing to negotiate on this matter until the government reopens.

According to Politico, "the unusual tactical disagreement between the two top congressional leaders played out in front of cameras Tuesday on Capitol Hill as the shutdown heads into its second week."

Johnson, who has not convened the House in days, told reporters this week, “I’m certainly open to that. We’ve done it in the past. We want to make sure that our troops are paid.”

Thune, however, disagreed, saying, “Honestly, you don’t need that.”

“Obviously, there are certain constituencies — many of them are going to be impacted in a very negative way by what’s happened here. But the simplest way to end it is not try to exempt this group or that one or that group. It’s to get the government open," he added.

In Thune's view, Republicans should hold firm and not even call the House back until Democrats in the Senate agree to pass the funding bill the House already passed.

Further complicating the issue is that House Republicans have avoided swearing in Rep.-elect Adelita Grijalva (D-AZ). Grijalva is the final vote needed for a Trump-opposed bipartisan discharge petition for the House to compel the Trump administration to release the Jeffrey Epstein sex trafficking case files.

But as a consequence of the House's inaction, noted policy analyst Matthew Yglesias, this inaction is also to the GOP's detriment, as with the House gone, they are incapable of forcing messaging votes to try to shift blame for the shutdown onto Democrats.