John Thune Urges Support For Bipartisan GENIUS Act To Establish Frameworks For 'Stablecoins'

Forbes Breaking News

During remarks on the Senate floor Thursday, Senate Majority Leader John Thune (R-SD) spoke about the GENIUS Act.

Transcript

00:01Mr. President, it's been well over a decade since the term cryptocurrency entered our

00:05lexicon.

00:07Like many innovations, cryptocurrencies were at first seen as a novelty, something used

00:12by few and understood by even fewer.

00:15But that changed quickly.

00:16More people began using and purchasing digital assets.

00:20Innovation took place, and crypto demonstrated its staying power.

00:25Mr. President, stablecoins are an important part of the crypto ecosystem.

00:30Many digital asset advocates believe in holding bitcoin given its price fluctuations in growth

00:35and value over the last several years.

00:38Stablecoins, however, have a value that's pegged to an asset, usually the U.S. dollar.

00:44They offer the speed and security of the blockchain with the stability and usability of a dollar

00:49bill.

00:50And they're a business and consumer-friendly way of making payments.

00:54Mr. President, hundreds of billions of dollars of stablecoins are in circulation today.

01:00The vast majority are dollar denominated.

01:02But in the United States, stablecoins have operated in a legal gray zone.

01:08Stablecoin issuers trying to follow the rules can't be sure what rules to follow.

01:12The Biden administration chose to regulate crypto companies by arbitrary enforcement measures.

01:19Regulators filed numerous lawsuits against crypto firms.

01:22And these hostile actions led a number of U.S.-based companies to consider moving out of the

01:26United States altogether.

01:27Mr. President, I think we all agree the United States should be the world's leader in financial

01:32innovation.

01:33Stablecoins should be made in the USA.

01:37But we can't lead in innovation if there's no clarity for the innovators.

01:41The Genius Act provides that clarity.

01:43It's the first step in bringing digital assets into our financial system by setting a clear

01:48framework for stablecoins.

01:51To be clear, Americans are already using stablecoins and will continue to use them with or without

01:56this legislation.

01:58What this bill does is establish a framework that protects consumers and safeguards national

02:02security while promoting that innovation right here in the United States.

02:07The Genius Act would implement light touch and tailored standards for stablecoin issuers

02:11so consumers can trust who they're doing business with.

02:16Reserve requirements would give consumers confidence in the value of the stablecoins that they hold.

02:22And the bill's enforcement provisions would provide companies with clarity on what the

02:25rules are and ensure accountability for any violations.

02:30The Genius Act would also protect against national security threats and money laundering.

02:35Stablecoin issuers would be held to the same standards as other financial institutions

02:38subject to the Bank Secrecy Act.

02:41They would need to monitor and report suspicious activity.

02:45They would have to comply with U.S. sanctions.

02:48And they would have to block transactions that violate state and federal laws.

02:53Ms. President, stablecoins are operating today without any of these requirements.

02:58And not passing this bill means allowing the status quo to continue.

03:02No consumer protections, no national security safeguards, and the risk of arbitrary enforcement

03:07actions from financial regulators.

03:10Passing this bill is also about American strength.

03:13It would create demand for the U.S. dollar and for treasuries.

03:16That's a good thing, both for our national security and for our fiscal house.

03:21Ms. President, this bill is the product of bipartisan consensus building.

03:26I'm proud of the process that this has gone through, and I'm grateful to Senators Lummis,

03:31Hagerty, Gillibrand, and also Brooks for their leadership on this issue and their work on

03:36the bill.

03:37Chairman Tim Scott has also been a critical member of the team.

03:41The Banking Committee held a three-hour markup during which the committee considered 40 amendments

03:46to the bill.

03:48That bill was reported out by a vote of 18 to 6, with five Democrats supporting it.

03:52But the work didn't end there.

03:54Bill sponsors have been meeting for weeks, including nights and weekends, since the markup

03:59to address changes that make this bill better.

04:03Today we're voting on the sixth, sixth version of the Genius Act, drafted with input from both

04:10Republicans and Democrats.

04:13And if Senators would like the opportunity to make further modification to the bill, I

04:17encourage them to vote for cloture.

04:20Once we're on the bill, we can discuss changes here on the floor.

04:24We've had an open process on this bill so far, so why stop now?

04:28Ms. President, the Genius Act is by no means the last word on digital assets.

04:33I expect the Senate will continue to work in this space, including work toward market-structured

04:38legislation to address features of the crypto market that are not captured solely by stable

04:43coins.

04:44But the Genius Act is a first step toward bringing digital assets into our financial system and

04:51promoting American leadership and financial innovation.

04:54We have the opportunity to move the ball forward today.

04:57And, Mr. President, I encourage my colleagues to take it.

05:01Mr. President, I yield the floor.

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