Legislative Debate on Crypto Bills Intensifies

The legislative debate surrounding two key crypto bills will intensify on Capitol Hill, with lawmakers in both chambers of Congress scheduled to discuss key digital asset issues.

On Wednesday, the Senate Committee on Banking, Housing, and Urban Affairs will be “exploring bipartisan legislative frameworks for digital assets.”

The House Financial Services Committee will hear testimony on stablecoins and central bank digital currencies (CBDCs) on March 5.

Bipartisan calls to pass crypto bills increased last year, with key Republicans eager to fulfill 2024 campaign promises to the digital assets industry pressing for crypto-friendly legislation.

Earlier this month, Senate Banking Committee Chairman Rep. Tim Scott (R-SC) promised to pass a market structure bill and regulatory framework for stablecoins within the first 100 days of President Donald Trump’s crypto-friendly regime.

The Financial Innovation and Technology for the 21st Century Act (FIT21) was passed by House lawmakers last year; however, the new Congress will need to approve the market structure bill again before it moves to the Senate.

Legality for Stablecoin Issuers

Momentum is building around the GENIUS Act, which would provide a federal pathway to U.S. legality for stablecoin issuers, including Tether and Circle.

CBDCs resemble stablecoins, pegged to fiat currencies like the U.S. dollar, but they are maintained by governments or central banks rather than private companies.

Trump campaigned against CBDCs, warning they would give the government sweeping control over Americans’ finances. Rep. Tom Emmer (R-MN), a crypto advocate, has previously pushed to ban the Federal Reserve from issuing a CBDC without Congressional approval.

Bill Hagerty (R-TN) introduced a version of the GENIUS Act in the Senate this month. While the text hasn’t been made public yet, it has been referred to the Senate Committee on Banking for further review and debate.

Republicans hold a Senate majority but will need support from Democrats to garner the 60 votes required for most legislation.

On Thursday, Hagerty referenced growing partisan conflict in a video on X (formerly known as Twitter), accusing Democrats of hindering the implementation of President Trump’s agenda.

Sen. Elizabeth Warren (D-MA), the top Democrat on the Senate Banking Committee, has publicly opposed Hagerty’s stablecoin bill, citing a lack of “strong consumer protections and guardrails against money laundering,” according to Punchbowl News.

Edited by James Rubin