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Yahoo
18-07-2025
- Business
- Yahoo
House passes the GENIUS Act: Congressman explains why
The US House of Representatives passed three crypto-related bills, including the GENIUS Act. The bills were sent to President Trump's desk after passing both chambers of Congress, marking a major milestone in the legalization of crypto. Congressman Mike Haridopolos (R-FL), who serves as the Majority Whip of the House Financial Services Committee, joins Market Domination Overtime to discuss the legislation and why crypto has been a key focus for Congress. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Well, today we actually just passed the genius act. That is the one that creates the logic for stable coins. It's the one that makes the, will make the United States the center of activity for stable coins. Of course, as we've moved this type of digital currency forward, we've been behind the times, as you know, because the prior administrations, let's just say lack of clarity on the whole issue. We're able to work that out in a bipartisan way, by the way. Uh today in the United States House, I just came off the floor in the United States House, and of course we're going to be moving forward with what's known as Clarity Act and CBDC next week. One question I had, Congressman. I would bet you, sir, there are there are viewers watching this and they're thinking, you know what, um, we don't own crypto, we don't have exposure to crypto. It's maybe not that high on their list of priorities. Explain to those viewers, Congressman, why this was such important legislation to get through now. What was the what was the need? What was the demand? Well, I think in general just to give your viewers some notice on it, uh, what we need is that we want the United States to be first and foremost the financial capital of the world. We want to make sure that we can move money quickly, efficiently and without corruption. And what we do when we're looking at crypto in general, it should be what I would just call a better electronic ledger, meaning you understand where money is moving, who's moving it, how much they're moving it, and you want to move it more quickly. Uh traditional banking course has a lot of opportunity. We we always talk about bank wires, etc. But crypto and blockchain are what really is the future. Uh this way we have what's called a dollar-backed stable coin. Almost like if you went to a casino, you get handed the chips, you can move more easily within the casino, and then you can cash out of course when you leave that casino. I'm not I'm not saying that crypto is a casino, what I'm saying is it's a it's a form or a coin, almost like a poker chip, um, or a device that you use in casinos so you can move around more effectively instead of putting dollar bills all over the table, etc. So this is a smarter way of doing business. It allows more transactions and it will do it more quickly. And and remember the other nations are in the world that are competing with this. I mean, many companies did not come to the United States because they didn't have the regulatory model. And so they went to places like El Salvador, uh, the UAE, Singapore, let alone the EU. We want those dollars and, more importantly, finance to come to America. We want to be the epicenter of capitalism. Congressman, how much of this was also about, and I'm sure this is a question folks are asking, that it came down to promises that were made on the campaign trail to the crypto industry, to the crypto lobby, which, you know, let's be fair, that's that's a much more powerful, impactful, influential lobby now. Well, they are. To their credit, they got really involved in politics. I can say with confidence, at least from my own perspective, I didn't get any money from crypto when I ran. I'm a new member of Congress. I I learned more about the issue, of course, as serve as the whip of the Financial Services Committee. But this is the future of finance. It's a more efficient way to move money and it should reduce overhead costs for everyday businesses. That's what really makes the difference. And and what was happening is that these investment dollars were going everywhere else in the world because this is where people want to go with their money. Again, we're not talking Bitcoin, we're talking crypto, quote, blockchain. Bitcoin is just one of the realms in which move and we've seen of course a radical increase in that price. But we want to make America the the the capital of finance and the way you do it because people who are in the finance world see this is a more efficient way to move money. And you also have the protections of the American regulatory system and, more importantly, a let's say a stable judicial system that doesn't exist in countries like China. And so we want to be that epicenter and I think that's why this thing really moved in a bipartisan way. It wasn't about campaign dollars, it was about American financial opportunity to be the epicenter of this growing industry. The market structure bill, Congressman, on that one, I'm curious how how much harder you think that's going to be to ultimately get through. Uh, you know, you have heard Democrats raise what they see as these concerns, what they frame as conflicts of interest about the Trump family benefiting from their investments in crypto. How do you see that playing out? No, that's a great question. I really appreciate Josh. And with this one is to me, is even, I think this is even more important because you have the bit the stable coin, that's important, but you need to have the the regulatory structure on top of it. So you know when if you're an investor, whether you're being treated as a commodity, which the CFTC would regulate, or a financial instrument, which of course the SEC would regulate. And what was happening in the prior administration is that these companies are saying we want to move these finances to America. They got this kind of blah blah blah answer and there was no clarity. It's the reason why we named this market structure bill clarity. You know who's going to regulate you, how it works and how to protect the investor. I think this is the lynchpin of the whole thing. We've been trying to marry these two bills up, that being the stable coin bill and the market structure bill, because one is dependent on the other. And and I think that clarity is important because when people who have this money who want to invest, they want to know who is going to be their regulator as opposed to this nebulous situation that has been existing for the last four years. Final question, Congressman. Just want to switch gears on you. The big beautiful bill, sir. Uh polls suggest we got a majority of Americans here who oppose this legislation. I don't know if you saw this. Looks like a new one from CNN. They say Americans say 61% to 39% that they oppose the spending bill overall. I'm curious, sir, what you make of that and do you see that potentially as a warning sign for the GOP, for Republicans, when it comes to midterms? Well, look, based on the media reports, I'm not surprised it's a 60-40 split against this at this point. But when I walk through the bill and I talk to real people on the street, and I tell them, hey, guess what, because what we did, your taxes are actually going down. Because of what we did, if you earn tips or overtime, let alone a lifetime of work with Social Security, your taxes are going down. If you want to have a strong border war, I'm excuse me, wall, they're now protected. I mean, it's the piece by piece that we're going to be able to explain for the next 12 to 18 months, where I feel very confident when people actually find out what's in the big beautiful bill that they like it. And they're also going to find out with some of these lies about Medicaid. Medicaid is, as you know, is welfare health care. No one who's vulnerable is going to lose Medicaid. Those are people in nursing homes, or are, of course, people are disabled, let alone low-income families that have children. They're not losing Medicaid. But if you're an illegal alien, guess what? You're going to lose it, because you shouldn't have it in the first place. And so a year from now, when people see that the most vulnerable were not kicked off Medicaid, they're going to like the bill. And and I came here to Washington to put more money back in people's pockets. And and if I can say one last thing, Josh, this this myth about increasing the deficit is just that. They said the economy would only grow at 1.8%. Well, when you supercharge the economy with tax cuts and incentives for business to invest in in big manufacturing, you're going to you're going to explode this economy in a positive way. We're going to see three and 4% growth rates next year because we're reinvesting in the business realm, which the same ideas in mind when we passed the crypto legislation. We want America to be the place to do business and reduce that regulatory burden and make sure this economy truly takes off. That's our goal. And I'm confident a year from now, we're going to be able to back that up. Congressman Harodopolis. I think I nailed it that that time. You nailed it. You nailed it, Josh. Thank you, sir. Appreciate your time. Thanks, Josh, for what you do every day. Thank you. 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New York Times
18-07-2025
- Business
- New York Times
Trump Administration Live Updates: Bondi to Seek Release of Some Epstein Material, but Faces Hurdles
The rapid succession of House votes showed the industry's growing influence in Washington, where lawmakers had declared it 'crypto week' on Capitol Hill. The cryptocurrency industry reached a major milestone in Washington on Thursday, as Congress cleared legislation outlining the first federal rules for stablecoins, a popular form of digital currency. A bipartisan vote in the House to approve the bill, known as the Genius Act, sent it to the White House for President Trump's signature, now expected on Friday. He has promised to make it the first major piece of crypto legislation signed into law in the United States. But even as the industry and its backers notched their first big policy victory, the fate of a potentially more consequential digital currency regulation bill still working its way through Congress was in doubt. The House on Thursday also passed the Clarity Act, sending the Senate legislation that would establish cryptocurrency market regulations that industry executives have championed for months. At the heart of that measure are provisions that would weaken the power of the Securities and Exchange Commission to police crypto and instead hand more control to the Commodity Futures Trading Commission. That could shield the industry against the kind of aggressive enforcement the S.E.C. undertook in the Biden administration, when regulators filed lawsuits against a procession of major crypto firms, and instead empower a commission that is seen as much more friendly to it. The Clarity Act 'has been absolutely the most important thing we have been pushing for,' said Kara Calvert, a top policy official at Coinbase, the largest U.S. crypto exchange and a longtime target of the S.E.C. Representative French Hill, Republican of Arkansas and the chairman of the Financial Services Committee, said the package of legislation would deliver on Mr. Trump's vision to 'make America great again by bringing capital back here, pursuing innovation here and leading in digital payments, just as we have for decades in global capital markets and in finance generally.' The measures passed over the vociferous opposition of most Democrats, who argued that the legislation would hand the crypto industry a lax set of regulations it had written itself to benefit wealthy players, including Mr. Trump's own family, as they sought to enrich themselves. Representative Maxine Waters of California, the top Democrat on the Financial Services Committee, derided the action as 'a vote to give Trump the pen to write the rules that would put more money in his family's pocket,' one that would cause 'consumer harm' and 'plant the seeds for the next financial crisis.' Representative Brad Sherman, Democrat of California, said the action was one of compliance by Republicans to 'do what makes profit for the crypto bros, including Donald Trump.' But it drew support from a large bloc of Democrats, including those who argued that some regulation of the cryptocurrency industry was better than none, given how quickly crypto markets were growing. 'The only question is whether we will begin the hard work of developing regulation or refuse to begin,' Representative Angie Craig of Minnesota, the top Democrat on the Agriculture Committee, said in a speech on the House floor about the Clarity Act. Under the bill, she added: 'Consumers will finally be protected by the same sort of guardrails that protect investors in other sectors of the economy.' The big bipartisan votes on the legislation reflected the industry's success in cultivating powerful allies in government. Crypto firms financed a network of super PACs that spent more than $130 million backing pro-crypto candidates in the 2024 election. Mr. Trump is also a vocal crypto enthusiast, with an array of digital currency businesses that have bolstered his family's wealth — a point of frustration for many Democrats who support the industry's ambitions but do not wish to be seen as enriching a Trump family venture. The bills had appeared to be on a glidepath toward easy passage in the House this week, but action stalled when a small group of conservative Republicans staged a revolt, blocking debate and throwing the House floor into chaos. They demanded stronger assurances that a third bill, which would ban the Federal Reserve from issuing its own central bank digital currency, or C.B.D.C., would make it into law. Image In the Biden era, the S.E.C. launched a wide-ranging crackdown on the crypto industry, suing top exchanges such as Coinbase. Credit... Gabby Jones for The New York Times That measure also passed on Thursday, sending it to the Senate. But it was not clear whether it would draw enough bipartisan support to survive in the Senate, where it would need the backing of at least seven Democrats to scale procedural hurdles and come to a vote. Struggling to put down the internal revolt, House Republican leaders promised to attach the C.B.D.C. ban to the annual defense policy bill later this year, yoking it to legislation that lawmakers in both parties regard as a 'must-pass' item. But it was not clear whether that would be successful, and some conservative critics remained skeptical. 'The number one thing that is not happening today is a ban on a central bank digital currency,' Representative Marjorie Taylor Greene, Republican of Georgia, said during an appearance Thursday on 'War Room,' a podcast hosted by Stephen K. Bannon. She argued that the issuance of a C.B.D.C. would expose the public to financial surveillance. 'This means the ability for the government to take control of your digital bank account where all your money is and turn it off,' she said. She mocked the deal her party's leaders had offered, claiming it would 'not be honored,' and was one of 12 Republicans to oppose the stablecoin bill on Thursday. The road ahead for the rest of the crypto package was uncertain. Senators have signaled they wish to draft their own version of a crypto market structure bill, and that debate is likely to be complex and potentially lengthy. It's unclear whether Democrats would be prepared to support such an industry-friendly bill, one that is reviled by consumer protection groups. 'It's a horrifically bad piece of legislation that stands ready to eviscerate our existing securities laws,' said Hilary Allen, a law professor at American University who has testified before Congress about crypto regulation. Still, even after the blowup in the House, the rapid succession of votes on Thursday showed the industry's growing influence in Washington, where lawmakers managed to salvage what they had declared 'crypto week' on Capitol Hill. All week, the industry flexed its muscles with a marketing blitz that included ads at bus stops in Washington and crypto-themed chocolate bars in vending machines set up around Capitol Hill. Image House Speaker Mike Johnson speaking to the press outside his office at the U.S. Capitol on Thursday. Credit... Kenny Holston/The New York Times The votes in the House this week capped a series of legal battles waged by top crypto firms. In the Biden era, the S.E.C. launched a wide-ranging crackdown on the crypto industry, suing top exchanges like Coinbase and Kraken. The agency argued that virtually all cryptocurrencies constituted securities, like shares of companies traded on Wall Street, and that crypto companies were breaking the law by offering them without proper disclosures. The S.E.C.'s legal offensive threatened the crypto industry's survival in the United States. Last year, several top firms banded together to finance a super PAC called Fairshake and two other affiliated PACs, which embarked on a spending spree aimed at stacking Congress with pro-industry legislators. That effort was remarkably successful. As soon as Mr. Trump took office in January, the crypto world's legislative priorities started moving forward in Congress. Last month, the Senate passed the Genius Act, which gives a government seal of approval to stablecoins, a type of digital currency designed to maintain a constant price of $1. At the same time, legislators in the House introduced the Clarity Act, the industry's most ambitious legislative effort. A central aim of the Clarity Act is to lock in some of the gains that the crypto world has made under Mr. Trump. In recent months, the S.E.C. has dropped its lawsuits against crypto companies, but the agency could theoretically revive that effort under a future president. The industry wants to ensure that does not happen. If the Clarity Act passed, 'we'd definitely be boxed out of bringing any cases for past misconduct,' said Amanda Fischer, who was a top S.E.C. official during the Biden administration. 'It would retroactively bless all the conduct of the crypto industry.'
Yahoo
29-06-2025
- Business
- Yahoo
3 Ways the Genius Act Could Affect the Cryptocurrency Sector Over the Next 5 Years
The Genius Act, regulating stablecoins, just passed the Senate. It still needs to pass a House vote and avoid veto before becoming law. It will change a handful of big features about the crypto sector if it's adopted. 10 stocks we like better than XRP › On June 17, the U.S. Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins (Genius) Act, vaulting the first comprehensive federal stablecoin framework over its biggest hurdle. The bill now heads to the House, where the Financial Services Committee is preparing its own text for conference negotiations and potentially a vote later this summer. It could be signed into law before the fall, reshaping the cryptocurrency landscape in a major way. The act's mix of strict reserve mandates and nationwide licensing has the power to determine which blockchains are favored, which projects matter, which tokens are used, and thus where the next wave of liquidity lands. Let's dig in and take a look at three of the biggest ways the legislation could make waves, assuming it gets signed into law. The Senate bill would create a new "permitted payment stablecoin issuer" charter and requires every token to be backed 1:1 with cash, U.S. Treasuries, or overnight repurchase agreements (repos) -- all audited annually for issuers above $50 billion in circulation. This is a distinct change from the present Wild West system, in which there are few meaningful safeguards or reserve requirements. That clarity hits just as stablecoins have become the dominant medium of exchange on blockchains. In 2024, they accounted for roughly 60% of all crypto transfer value and processed 1.5 million transactions a day, most less than $10,000. For everyday payments, a stablecoin token that never drifts from $1 is simply more useful than most legacy payment‑focused altcoins, whose price can swing 5% before lunch. Once U.S.‑licensed stablecoins can move legally across state lines, merchants that still accept volatile coins will be hard‑pressed to justify the extra risk. During the next few years, those altcoins may see their utility severely erode along with their investment thesis, if they can't pivot. Even if the Senate's bill doesn't pass in its current form, the writing is on the wall. The long-term incentives will tilt sharply toward dollar‑pegged payment rails rather than payment-focused altcoins. The new regulations wouldn't just bless stablecoins; if the bill is signed into law, eventually it will effectively funnel these coins to blockchains that can satisfy auditors and risk officers. Ethereum (CRYPTO: ETH) already hosts about $130.3 billion worth of stablecoins, far more than any rival. Its mature decentralized finance (DeFi) stack means issuers can plug into lending pools, collateral lockers, and analytics out of the box. They can also duct-tape together a set of regulatory compliance modules and best practices so as to try to appease regulatory requirements. In contrast, the XRP (CRYPTO: XRP) Ledger (XRPL) is positioning itself as the compliance‑first home for tokenized money, including for stablecoins. In the last month alone, fully backed stablecoin tokens have launched on XRP Ledger, each touting built‑in tools for account freezes, blacklists, and identity screening. Those features align neatly with the Senate bill's requirement that issuers maintain robust redemption and money‑laundering controls. Ethereum's compliance stack could potentially leave issuers in violation of that mandate, but it's difficult to say exactly how stringent regulators' requirements are on that front as of now. Nonetheless, if the bill becomes law in its current form, large issuers will need real‑time verifications and turnkey know-your-customer (KYC) hooks to stay even approximately in good standing. Ethereum offers flexibility at the expense of complicated technical implementations, whereas XRP offers top‑down control on a streamlined platform. Both chains look advantaged at the moment, at least in comparison to privacy‑centric chains or speed-focused chains, which may struggle to meet the same requirements without expensive retrofits. Because every dollar stablecoin must sit on a matched reserve of cash-like assets, the act quietly ties crypto liquidity to U.S. short‑term debt. The stablecoin market already tops $251 billion. It could grow to reach $500 billion by 2026 if institutional adoption stays on its current path. At that scale, stablecoin issuers would be among the largest buyers of U.S. Treasury bills, recycling the yield to fund redemptions or customer rewards. For blockchains, the connection matters in two ways. First, the demand for more reserves means that more corporate balance sheets will be holding Treasuries while simultaneously holding native coins to pay network fees, thereby driving organic demand for coins like Ethereum and XRP. Second, stablecoin interest revenue could underwrite aggressive user incentives. If issuers send back part of their Treasury yield to holders, spending stablecoins rather than using a credit card might becomes the rational choice for some investors, accelerating on‑chain payment volume and fee throughput. Assuming the House keeps the reserve language intact, investors should expect increased monetary sensitivity as well. If regulators tweak collateral eligibility or the Federal Reserve shifts bill supply, stablecoin growth and crypto liquidity will move in lockstep. That is a risk worth noting, but also a sign that digital assets are entering the mainstream of capital markets rather than standing apart from them from here on out. 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The Motley Fool has a disclosure policy. 3 Ways the Genius Act Could Affect the Cryptocurrency Sector Over the Next 5 Years was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
- Yahoo
US House Passes Accredited Investor Bill
You can find original article here Wealthmanagement. Subscribe to our free daily Wealthmanagement newsletter. A bill changing the accredited investor definition has cleared one congressional hurdle, paving the way for expanded investor access into the private markets. On Monday, the House of Representatives passed the 'Fair Investment Opportunities for Professional Experts Act,' sponsored by Financial Services Committee Chairman French Hill (R-Ark.). The bill passed in an overwhelming 397-12 vote. Hill originally introduced the bill in 2023 and 2024, during prior sessions of Congress when Republicans did not hold both houses (or the White House). During a FINRA conference this spring, Hill said there was a 'bipartisan consensus for broadening who is an accredited investor' and what opportunities should be available to non-institutional clients. Unlike retail investors, accredited investors can access private markets, including hedge funds and private equity funds. Institutional investors are allowed in the space, but currently, retail investors must hit wealth thresholds to qualify (at least $200,000 in annual income or more than $1 million in net worth). Hill's bill hopes to change that by expanding the accredited investor definition in the 1933 Securities Act to include individuals with 'certain licenses, education or job experience' beyond wealth and income thresholds. While threshold supporters claim it protects middle-class investors from risky private markets, its critics argue the rule means retail investors have missed out on a drastic expansion of private markets. Hill's bill was one of two launched in the GOP-controlled House of Representatives. U.S. Rep. Mike Lawler (R-N.Y.) co-sponsored legislation directing the SEC to create a test (administered by FINRA) that retail investors could take to qualify as accredited investors. That bill cleared the Financial Services Committee and is on the congressional calendar (though this doesn't mean a vote on it is assured). Banrion Capital Management CEO Shana Orzyk Sissel didn't expect much immediate impact if the bill passes the Senate and is signed into law by President Donald Trump, as the more the accredited investor definition is expanded, 'the less it means anything.' 'The definition of accredited investor keeps moving, and many asset managers and advisors are confused about exactly who qualifies, so that will be another learning curve as well if this passes,' she said. Sissel expected that many asset managers would stick with non-registered products due to the cost of creating new funds specifically for accredited investors who couldn't meet the minimum requirements placed on those products (even if the wealth threshold changes for the definition). 'Some advisors could create feeder funds for their accredited investor clients that then feed into alts products, but that can come with significant expense,' she said. In the 2010 Dodd-Frank Act, Congress asked the SEC to examine the threshold's applicability consistently (and whether the annual income and net worth thresholds established in 1982 still make sense today). The commission voted to expand the definition in 2020 to allow individuals to qualify if they had certain professional designations or credentials (and also qualified SEC- and state-registered advisors). However, the monetary thresholds remained unchanged, although new SEC Chair Paul Atkins has previously emphasized the importance of expanding investor access to private markets. Sissel stressed that even if the bill passes, advisors should tread carefully, as their fiduciary duties still apply, and understand how to build portfolios, including alts, that make sense for clients' risk tolerance. 'Many alts aren't complicated, but depending on their structures, liquidity constraints and other risks need to be communicated appropriately so investors have a clear set of expectations,' she said. 'There are some (asset) managers with very good marketing teams, but have bad products out there, so sifting through all the noise is important.'
Bloomberg
24-06-2025
- Business
- Bloomberg
Fed's Powell Testifies Before US House on Monetary Policy
Welcome to TOPLive's coverage of Federal Reserve Chair Jerome Powell's testimony before the US House of Representatives Financial Services Committee. The central bank chief is making his twice-yearly trip to Capitol Hill to report on monetary policy as the Fed tries to navigate a new tariff regime while fending off criticisms from the White House. Join us at 9:45 a.m. New York and Washington time, 15 minutes before the hearing is set to begin, for news, analysis and market reaction.
