U.S. senator Kirsten Gillibrand (DN.Y.), one of the leading democrats who supports crypto law, warns the industry against pushing a “watery” version of long -awaited stablecoin currently moving to the Senate, focusing that strict regulations are required to stimulate change and protect investors from the bank runs as one of the silicon -ranks of the bank runs from the bank runs as one of the silicon -ranks of the bank runs as one of the silicon. Valley Bank in 2023 and the collapse of the Crypo expleation FTX at the Silicon Valley Bank in 202 in 2022.
Speaking at the DC Blockchain Summit in Washington, DC on Wednesday, Gillibrand said the Bipartisan Stablecoin Bill – guide and establishment of national change for the US Stablecoins Act (Genius Act) – creates a lot of protection for consumers in the event of a banking scenario.
“You have to think in all the ways that can go wrong. Something as simple as how you defined a dollar-is a wealthy wealth similar to a dollar? What happens if your 1-to-1 back is in all wealth and you have an interest rate as SVB did, and you have a running on your stablecoin and all your dollar-dollar back Stablecoin, that’s a fall, ”Gillibrand said.
If the dollar back-back requirements are not met or implemented, Gillibrand said: “You will only have another FTX. You will only have another algorithmic stablecoin that is emerging because it doesn’t really make sense. That’s a big problem for the US market.”
“The worst thing we can do is its water,” Gillibrand said. “Never mind that a watery bill will help your industry. It will ruin your industry. Since another SVB, another algorithmic Stablecoin (collapse), will continue to create such uncertainty that no one wants to do business in the United States.”
After years of misconduct, Stablecoin law appears to be finally getting momentum. Earlier this month, the US Senate banking committee voted to advance the Genius Act to a vote throughout the Senate. A similar bill from the US House of Representative is expected to go public on Wednesday.
Read more: US House Stablecoin Bill prepared to go to public lawmakers at the height of the crypto panel says
Gillibrand said that if Congress gets the Genius Act that is signed in the law, it is more likely to make it a development in a market structure bill.
“A market structure bill is more complicated. It controls the entire industry, not just a version of a digital possession,” Gillibrand said. “So it is really important that we do it right so we can move on to something bigger, and something we need to build even more aggregate around.”
A market structure bill will create a regulatory framework for the crypto industry as a whole, providing crypto companies and digital those who provide road policies and a framework to determine whether their tokens are security or not – and therefore, who is their main regulator.
Speaking on the same panel, Sen suggested. Bernie Moreno (R-OHIO) that any digital possession with centralized gives is likely to be a security, not a commodity.
“If your digital money has a CEO it is not a commodity, by definition,” Moreno said.
In another panel discussion at the same event on Wednesday, Sen said. Tim Scott (Rs.C.), the future structure of the market structure will need to “find a way to create a structure that works beyond the two major security categories compared to the goods.
Moreno said he wanted to see the Genius Act passed before the August backward.
“I’m going to release Gauntlet – let’s do this by backing August, what do you think? The market structure, the genius act, (Strategic Bitcoin Reserve), everything was done in August,” Moreno said.
Gillibrand’s expectations, telling Moreno that there was no way to make a market structure bill made in August, but Congress would “certainly do Stablecoins” before the rest of the Tag -Head -perhaps, he was amended, even before Easter’s backdown in April, “if we’re really productive.”
