Senate Debates GENIUS Act Amid Credit Card Fee Controversy

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is set to be debated on the Senate floor, with crypto lobbying groups urging lawmakers to expedite its passage. The bill, which aims to provide a comprehensive framework for stablecoin oversight, has garnered enough support to potentially move to the House after a procedural vote on May 19. However, the path to passage is not without obstacles.

Several senators have proposed amendments that could delay the bill, including a controversial measure by Senators Dick Durbin and Roger Marshall to attach the Credit Card Competition Act (CCCA) to the stablecoin bill. This amendment seeks to force payment networks like Visa, Mastercard, and American Express to compete on the fees they charge merchants for processing transactions. The amendment has faced strong opposition from banks and card networks, who argue that it represents government overreach.

Crypto advocacy groups, including the Blockchain Association, the Crypto Council for Innovation, the Digital Chamber, and the DeFi Education Fund, have expressed their readiness to assist lawmakers in maintaining momentum for the bill. They emphasized the importance of focusing on the bill's central goal of providing a targeted and comprehensive approach to stablecoin oversight. However, the growing list of amendments, which includes new disclosure requirements for government officials holding stablecoins and guardrails against potential conflicts of interest, has created a political minefield.

The proposed amendments have sparked concerns among crypto advocates, who fear that the unrelated credit card provisions could derail their long-sought victory. James Czerniawski from the libertarian group Americans for Prosperity has criticized the changes, describing them as "unacceptable" and "bad policy" that undermines Americans’ access to credit. The situation has become increasingly complex, with the potential for procedural hurdles to slow down the process and push the final passage into the week of June 9.

The GENIUS Act represents a significant milestone in the regulation of digital assets in the United States. If passed, it would be the first major crypto bill to clear the Senate, signaling a breakthrough in the regulatory landscape for stablecoins. However, the current political climate and the growing list of amendments pose challenges that could impact the bill's progress. Crypto supporters are now focused on navigating these obstacles to ensure the bill's successful passage.