The Senate is gearing up for a significant procedural vote on the Stubcoin Act this Wednesday, clearing its way to the cryptography sector after several contentious amendments almost derailed it.
Senate Majority Leader John Thune (R-S.D.) wrapped up the debate on Monday with updated versions of the Genius Act, which had faced criticism as part of a bipartisan deal forged last month following a couple of weeks of tough negotiations between Republicans and some Democrats who are favorable to cryptocurrency.
This decision seems to put an end to Thune’s attempt to pursue the bill via the so-called “normal orders.” While this traditional route could have complicated final approval and led to numerous proposed amendments, the shift suggests a desire to streamline the process.
“I think moving forward now is a positive step. If we had waited longer, it might have led to even more complications,” stated Senator Cynthia Ramis (R-Wyo.) on Tuesday.
She added that Thune appeared to be mindful of this, opting to proceed with only the adjustments made during negotiations with the Democrats, and she anticipates that the latest text will be the final version.
Meanwhile, Senate aides emphasized that while amendments are still being discussed, the timeframe has tightened ahead of the vote.
A hot topic in the mix is the Credit Card Competition Act (CCCA), introduced as an amendment by Senator Roger Marshall (R-Kan.). Yet, it’s looking less likely that it will be voted on as part of the Genius Act.
“There are several GOP senators weighing the potential trade-offs of supporting the CCCA. The public debate around this issue posed a significant risk to its primary aim,” a source noted.
They continued, “Leader Thune clearly calculated the situation and decided to steer the process back to Genius, limiting what Senator Marshall can do at this stage, which is disappointing for him as well.”
The CCCA aims to address credit card swipe fees that retailers incur when customers pay with credit. Marshall and his Democratic counterpart, Senator Dick Durbin (Illinois), argue that Visa and Mastercard dominate the market and charge higher fees.
The proposal would mandate large financial institutions to offer alternatives to Visa and Mastercard for processing transactions.
This proposed legislation has seen intense lobbying efforts. Retailers are in favor, while the credit card industry opposes it, claiming that it will benefit major retailers and could lead to the elimination of popular rewards programs.
“Debate around the Credit Card Competition Act has been long-standing in DC,” remarked Christopher Niebuhr, a senior research analyst at Beacon Policy Advisors.
“If this CCCA gets attached as an amendment, it could inject some uncertainty into the progress of the Genius Act,” he added.
Senator Lummis contributed to the push on Tuesday suggesting additional measures be included in the Stablecoin Bill.
“This marks the first bill reported by the Banking Committee in eight years,” she explained. “There were numerous voices eager to incorporate other finance-related measures, some of which could be controversial.”
She recognized that frustrations around the lack of chance for public discussion on these financial laws are valid, but noted other legislation is forthcoming, offering more opportunities.
While some GOP senators may feel relieved, the choice to advance the Genius Act without an open amendment process has raised eyebrows among certain Democrats who initially supported the legislation.
“I was optimistic about our bipartisan progress,” stated Senator Lisa Blunt Rochester (D-Del.) on Tuesday. “That was a key reason for our committee’s vote, which included the expectation of amendments.”
Blunt Rochester was among five Democrats who sided with a Republican in March to endorse the law from the Senate Banking Committee. She, alongside 15 other Democrats, also supported the Genius Act in a procedural vote last month.
However, she expressed her desire for additional amendments aimed at safeguarding consumers and ensuring financial system stability, along with addressing concerns related to fraud and connections between the cryptocurrency industry and President Trump.
“I made my stance clear,” Blunt Rochester said. “I hoped for a more transparent amendment process. That’s what I believed Leader Thune indicated last month, so I’ll review this latest language before deciding.”
Thune had stated last month his intention to push the Genius Act through the Senate via “regular orders,” allowing for a public amendment process, which he criticized Democrats for hindering earlier.
When he initially proposed the Stablecoin Bill, support from crypto-friendly Democrats was crucial.
Thune previously criticized Democrats, asserting they had opportunities to amend the bill on the floor.
“Voting for the proposal does not mean it’s the final version. That’s not how we operate now, even if it was in the past under their leadership,” Thune remarked back in May.
Senator Elizabeth Warren (D-Mass.), a staunch critic of the bill, cautioned on Tuesday that proceeding without amendments could jeopardize its support.
“Leader Thune had assured a transparent legislative process for revisions. This was his initial opportunity, and he has stepped away from that promise,” Warren told Hill.
“Some might feel they pushed for the bill, but without an amendment, that support could dwindle,” she added.
Nonetheless, Democratic leaders involved in negotiating the Genius Act highlighted the progress made through discussions with Republicans.
“I believe we worked diligently to address many concerns from colleagues,” Senator Angela (D-Md.) remarked on Tuesday. “We’ve consistently incorporated essential fixes into the legislation.”
