"If the 'stablecoin bill' passes the 60-vote threshold, it will lay the foundation for a regulatory framework for dollar-pegged tokens. However, progressive Democrats warn that the bill lacks key safeguards to prevent systemic risks."
The Senate has a key vote this week that could reshape the digital payment landscape regarding stablecoins.
On Monday, media reports indicated that Senate Majority Leader John Thune is preparing for a procedural vote on stablecoin legislation this Wednesday. This bill, supported by the Cryptos Industry and President Trump, aims to establish a regulatory framework for dollar-pegged tokens if it passes the 60-vote threshold. However, progressive Democrats warn that the bill lacks critical safeguards against systemic risks.
Reports indicate that after revisions last month, this bipartisan bill has gained support from crypto-friendly Democratic Senators Angela Alsobrooks and Mark Warner, paving the way for the bill's swift passage in the coming days.
The stablecoin bill will establish regulatory rules for dollar-pegged tokens used for payments. According to the bill's requirements, stablecoins must be backed on a one-to-one basis with reserves such as federal debt and must be subject to the oversight of federal or state regulatory agencies.
Despite receiving key support, Senate aides stated on Monday night that negotiations on the bill are still ongoing, and senators may still propose amendments.
Reports indicate that progressive Democrats have expressed strong dissatisfaction with the legislation, believing that the bill lacks safeguards to prevent stablecoins from endangering the financial system and being exploited by criminals. They also criticized the bill for failing to address the issue of Trump profiting from his own Cryptos trades.
The credit card competition clause has been sidelined.
Reports indicate that Thune's decision to terminate debate on the bill means that the previously promoted credit card processing competition clauses are unlikely to be included in the legislation.
Republican Senator Roger Marshall and Democratic Senator Dick Durbin previously pushed a proposal requiring large Banks to provide network choices for processing credit card Trade, including $Visa (V.US)$And$MasterCard (MA.US)$options outside. The goal is to lower the fees merchants pay for Trade by injecting more competition.
Reports indicate that Senate Banking Committee Chairman Tim Scott has hinted that his committee may consider credit card terms as separate legislation rather than as part of stablecoin legislation. Marshall indicated on Monday that he is contemplating the next steps and still hopes to vote on the legislation at some point.
This vote will not only determine the fate of the U.S. stablecoin regulatory framework but will also set the tone for cryptocurrency policy under the Trump administration. For a digital Assets market worth trillions of dollars, the arrival of regulatory certainty could trigger a new wave of capital flows and Industry restructuring.
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