Crypto Lobby Turns Up the Heat on Capitol Hill over Genius Act
🗞️ Capitol Countdown: Crypto and Credit Collide in Washington
In an unusually active week on the Hill, the U.S. Senate is facing intensified pressure from the crypto lobby to pass the Genius Act—a comprehensive stablecoin bill—while simultaneously weighing a hot-button amendment that would curb credit card processing fees. Both proposals are being framed as battles over financial freedom, but they’re igniting tension between tech innovation and entrenched finance giants.
🔐 Stablecoins in the Spotlight: The Genius Act Push
A coalition of crypto lobbyists is aggressively campaigning for lawmakers to pass the Genius Act without further debate, citing urgency to establish a national regulatory framework before the end-of-session recess. As reported by Cointelegraph, industry advocates argue that delaying the bill risks falling behind global competitors and stalling U.S.-led digital asset innovation.
🔍 What the Genius Act Proposes:
A federal charter system for stablecoin issuers, including nonbanks.
A national regulatory structure that would preempt conflicting state laws.
Reserve transparency, redemption requirements, and consumer protection mandates.
Enhanced clarity for institutional and retail use of stablecoins.
While supporters say the bill is the key to unlocking a regulated digital dollar ecosystem, critics warn that skipping debate limits oversight on potential systemic risks.
💳 The Fee Fight: Credit Card Amendment Stirs the Pot
At the same time, a proposed amendment to limit interchange fees charged by credit card companies is gaining traction—drawing opposition from major banks and payment networks, while earning support from retail and small business coalitions. The amendment, if attached to broader financial legislation, would cap the fees merchants pay for credit card transactions, potentially saving billions in processing costs. https://cointelegraph.com/news/crypto-lobby-pushes-senate-pass-stablecoin-bill-without-debate
👥 What It Means:
Retailers support it, citing relief from growing payment costs.
Banks and credit card networks oppose it, arguing it could reduce consumer perks and security investments.
Crypto industry sees an opening, with stablecoins pitched as lower-fee alternatives for digital commerce.
💡 This unexpected convergence has led some in the digital asset space to suggest that stablecoins could benefit from rising discontent with legacy payment rails, especially if regulatory clarity is achieved through the Genius Act.
📊 Market Pulse
Stablecoin Supply: USDC and PYUSD saw modest 3-4% increases in circulation, signaling cautious optimism in light of pending legislation.
Tokenized Treasury Surge: Demand for tokenized T-bills continues, now topping $1.6 billion, reflecting stablecoins’ growing appeal as digital cash collateral.
Political Crosswinds: Expect procedural fireworks if lawmakers attempt to bundle stablecoin rules with fee reforms in a single floor vote.