Coinbase CEO Optimistic on Stablecoin Bill Amid Senate Gridlock and Trump Ties
Brian Armstrong remains hopeful for stablecoin legislation despite Senate hurdles and political controversies.
Coinbase CEO Brian Armstrong has expressed optimism that the U.S. Senate will pass comprehensive stablecoin legislation, despite recent setbacks and political controversies. Armstrong believes that a bill establishing rules for stablecoins could gain passage in the Senate as soon as this week.
The legislation, known as the GENIUS Act, aims to provide a regulatory framework for stablecoins, which are cryptocurrencies pegged to the U.S. dollar. Despite prior bipartisan support, the bill failed a procedural vote 49-48, as Democrats expressed concerns about insufficient protections in the legislation and President Donald Trump’s potential to profit from crypto ventures.
Armstrong’s optimism comes amid a broader push by the cryptocurrency industry to establish clear regulations for digital assets. The industry has spent over $119 million backing pro-crypto candidates in recent elections.
The GENIUS Act proposes that stablecoin issuers maintain a 1:1 reserve ratio with reserve backing from U.S. dollars, short-term Treasuries, or similar liquid assets. It also requires issuers to publicly disclose their reserve holdings and redemption policies to increase transparency.
Despite the bill’s initial failure, negotiations led by Senator Mark Warner are ongoing. Armstrong remains hopeful that the legislation will pass, stating that he is ‘optimistic’ a bill establishing rules for stablecoins could gain passage in the Senate as soon as this week.
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