Senator Elizabeth Warren expressed her concern about the potential consequences of the law on stablecoins, warning about the risks that it could present to narcotics traffickers and terrorists to avoid financial oversight. Additionally, the rise of digital currencies has raised broader concerns among lawmakers and banking groups regarding the separation of banking and commercial services.
Kara Calvert, a senior aide to the senator and vice president of American policy at Coinbase, the largest cryptocurrency exchange in the U.S., noted: "Things are moving slowly, but then it all happens at once."
The cryptocurrency industry has been faced with a series of steps taken by former President Donald Trump and the regulations put in place during his administration, which diverged from the aggressive campaign against the industry during Joe Biden's time.
One of the main goals of the digital currency industry is to establish legislative acts that would create a lighter regulatory environment for digital assets. It is important to note that the new impulse signals the advancement of digital assets industry legislation addressing issues of fraud and volatility.
The Senate Committee on Banking, Housing and Urban Affairs passed legislation on digital assets, establishing a regulatory framework for stablecoins, the first in history to provide a significant legislative framework for digital currencies. This bill received bipartisan support and is considered one of the most important steps of Congress towards ensuring clarity for the digital currency sector.
Senator Cynthia Lummis from Wyoming, known as the "Crypto Queen" in the Senate, remarked: "All the work that we have put in over the last four years is beginning to bear fruit now."
Many representatives of the digital asset industry and their supporters strive to create a more interconnected financial system with the use of digital assets and blockchain technology, enhancing digital currencies.
However, critics, primarily from the left side of the political spectrum, express concern about the potential risks associated with regulatory loopholes, friendly to digital currencies. Immigration activists fear that the law "gives Elon Musk the opportunity to launch his own cryptocurrency X."
The level of support from early actions by Congress in the area of digital currencies shows that lawmakers are ready to propose what the digital currency industry wants. Thus, the start of work on legislative proposals to regulate digital assets between regulatory bodies is initiated.
