Palmetto State News

In Washington, D.C., the U.S. Senate Committee on Banking, Housing, and Urban Affairs has advanced two significant pieces of legislation: the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act and the Financial Integrity and Regulation Management (FIRM) Act. These bills now proceed to the Senate floor.

The GENIUS Act, a bipartisan initiative, aims to establish a regulatory framework for payment stablecoins. Chairman Tim Scott (R-S.C.) highlighted its importance in protecting consumers and national security while fostering industry growth within the United States. He stated that this legislative step is crucial for providing clarity to both consumers and businesses in the digital asset sector.

Additionally, Chairman Scott's FIRM Act seeks to remove references to reputational risk as a measure of safety for regulated financial institutions. This bill marks an initial move towards ending debanking practices and has garnered support from various stakeholders.

Chairman Scott remarked on his commitment to regular order in committee operations, noting that it had been years since such a legislative markup occurred. He emphasized the importance of delivering on promises with today's advancement of these acts.

"The digital asset community – and, more importantly, the American consumers – deserve clarity," said Scott. "For far too long, the absence of a regulatory framework has left consumers vulnerable and businesses in the dark."

Scott described the GENIUS Act as establishing "common-sense rules" requiring stablecoin issuers to maintain 1:1 reserves, comply with anti-money laundering laws, and protect American consumers while promoting U.S. dollar strength globally.

Regarding the FIRM Act, Scott stated it would prevent regulators from using reputational risk as grounds for debanking legal entities. "No federal agency should have the power to cut off access to our financial services industry simply because they disapprove of a customer’s politics, business or industry," he asserted.

Scott acknowledged other legislative efforts addressing debanking issues and committed to working on long-term solutions alongside his colleagues.

He expressed gratitude towards Senators Hagerty and Lummis for their collaboration on the GENIUS Act and recognized Senator Alsobrooks' co-sponsorship. The success of these initiatives stems from bipartisan cooperation focused on safeguarding innovation within America.

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