A group of Democrats from the American Senate known to support the cryptography industry said they would oppose a bill on stables-lice-driven by the Republicans if it progressed in its current form.
This decision threatens to block the legislation which could establish the first American regulatory framework for Stablecoins, according to a May 3 report in politico.
According to the report, nine Democrats in the Senate declared in a joint declaration that the bill “still has many questions which were to be addressed”. They warned that they would not support a procedural vote to advance the legislation unless changes are made.
Among the signatories were senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester and Andy Kim – who had all supported the bill during its adoption by the Senate Banking Committee in March.
The bill, presented by Senator Bill Hagerty, is officially known as the National Innovation Guidance Law for Stablescoins (Engineering).
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The Senate is preparing to vote on the Stablecoin bill
The Senate should start consideration on the ground of the bill in the coming days, the first vote which takes place next week.
The bill was defended by the cryptography industry as a historic stage towards regulatory clarity. However, Democrats about Face reflect an increase in discomfort within the party.
Although revisions were brought to the bill after the approval of its committee to respond to democratic concerns, legislators said that changes had failed. They called for stronger guarantees linked to breed money, national security, foreign transmitters and responsibility measures for non -compliant actors.
The declaration was also signed by Senators Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper and Adam Schiff.
Senator Kirsten Gillibrand and Senator Angela Alsobrooks were absent from the list, who co -picked the bill alongside Hagerty.
Despite their objections, the Democratic senators stressed their commitment to shape the regulations responsible for cryptography. They would have declared that they “were impatient to continue working with our colleagues to solve these problems”.
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Crypto needs a stable bill
On April 27, Caitlin Long, founder and CEO of the Gustodia Bank, criticized the American federal reserve for having quietly maintained a key anti-scriptwriting policy which favored stablescoins at large banking, despite rules of relaxed cryptographic partnership for banks.
Long explained that, although the Fed recently canceled four previous cryptography directives, a declaration of January 27, 2023, it was left intact in coordination with the Biden administration.
According to Long, the directives prevent banks from engaging directly with cryptographic assets and prohibit them from emitting stablecoins on blockchains without authorization.
However, Long noted that once a Federal Stablecoin bill has become the law, it could prevail over the position of the Fed. “Congress should hurry,” she said.
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