Stablecoin Regulations Pass the Senate
Stablecoins are now more sensibly regulated under a new bill that has passed through the Senate this week.
Quick overview
- The U.S. Senate passed a bill to refine regulations on cryptocurrency stablecoins, moving away from outdated guidelines.
- The bill's passage has positively impacted the cryptocurrency market, with Bitcoin prices climbing above $107K.
- The legislation received bipartisan support, passing with a vote of 68-30, although some Democrats expressed concerns about its completeness.
- Senator Bill Hagerty believes the bill will enhance the U.S.'s position in the global crypto community.
Live BTC/USD Chart
The United States senate passed a bill on Tuesday that would refine the regulations on cryptocurrency stablecoins, finally freeing them from archaic government guidelines.
On Tuesday, the senate passed a bill to regulate stablecoins, and this landmark bill may pave the way for more modern regulations on cryptocurrency. When the bill was first announced and was moving through the government legislative process, the cryptocurrency market received a boost. We saw crypto prices jump again this week after the bill passed the Senate.
Bitcoin received one of the bigger boosts this week in response to the bill, climbing above $107K and clawing its way back to a near record high after dipping briefly below $100K only days ago. This could be just the beginning of what this bill could do to indirectly benefit the wider crypto market while directly affecting the regulation, stability, security, and value of stablecoins.
Th Fight for the Stablecoin Bill
This bill moved quickly through the legislative process as part of Donald Trump’s efforts to ensure that the cryptocurrency industry could flourish under his administration. Because of the impact of the bill on the entire crypto market, its processing was prioritized, and it passed remarkably fast by a vote of 68-30.
The bill was approved almost unanimously by the Republican senators as well as by eighteen Democratic senators. The bill received some opposition from the Democratic side of the aisle, though, with some senators noting that it did not address financial interests related to Donald Trump that they believed was an important issue.
The bill is not as complete as some of the senators would have liked, but Senator Angela Alsobrooks (D) said that the unregulated space of stablecoins will be regulated now. For that, the two parties were in agreement generally.
This bill should shake up the industry and have implications that reach incredibly far and beyond even the crypto space, according to Senator Bill Hagerty. He says that the bill will bring the U.S. closer to becoming a leader in the global crypto community.
Concern that the President and his family will profit from stablecoins and crypto in general have been addressed as the bill was debated, but the current law only prohibits Congress members form profiting off stablecoins. It does not restrict the President from doing so.
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