How GENIUS ACT squeaked through – despite Trump’s impotent ‘crypto council’
The passage of the stablecoin bill marked a significant milestone for the crypto industry, thanks to the efforts of Tennessee GOP Sen. Bill Hagerty. Despite facing opposition from crypto-skeptical Democrats like Sen. Elizabeth Warren, Hagerty successfully rallied support for the GENIUS Act, which sets clear rules for stablecoins backed by real assets like US Treasuries.
The bill aims to bring transparency to the creation and transactions of stablecoins, ensuring better reserve management and preventing big banks from profiting off traditional banking loopholes. This legislation is crucial for the $3.5 trillion crypto industry and paves the way for future regulations.
Hagerty emerged as a strong advocate for the crypto industry on Capitol Hill, overcoming skepticism within his own party and countering Warren’s attempts to politicize the bill. The Senate vote on the Genius Act was a close call, with Hagerty securing 66 votes in favor, demonstrating bipartisan support for stablecoin regulation.
While Warren tried to paint the bill as part of a Trumpian crypto grift, Hagerty clarified that stablecoins are not meme coins and emphasized the importance of passing the legislation for the industry’s growth. However, concerns remain about the optics of Trump’s involvement in the crypto business, which could complicate future legislative efforts.
The formation of Trump’s crypto council, led by industry experts like David Sacks and Bo Hines, was meant to mainstream the industry and influence legislation. However, the council lacked influence on Capitol Hill, leaving Hagerty to navigate the bill’s passage largely on his own.
Despite the White House’s defense of the council’s work, Hagerty may need to continue advocating for the crypto industry and pushing for regulatory clarity. The success of the stablecoin bill sets a precedent for future legislative action in the digital asset space, highlighting the need for continued engagement and advocacy within the industry.
