- Gottheimer talked about both the GENIUS Act and the Clarity Act, saying that he expects notable bipartisan support
- He specifically stated that the GENIUS Act received very good feedback
- The US House experienced delays in its proceedings, but the two mentioned crypto bills, along with the Anti-CBDC Surveillance State Act, saw progress late yesterday
Josh Gottheimer (member of the US House of Representatives from New Jersey’s 5th district and a member of the Democratic Party) has sent a direct letter to Democrats, urging them to vote for pending crypto bills, stating: “It’s time to get these done.”
In an interview on CNBC, Gottheimer talked about both the GENIUS Act and the Clarity Act, saying that he expects notable bipartisan support and that the bills will get votes from at least a few dozen members on the Democratic side. He also specifically stated that the GENIUS Act got very good feedback.
Ending the “Wild West” of Crypto
When talking about the Clarity Act, Gottheimer stated that it’s the Wild West out there, saying: “If we do nothing, you’ll just be right at the place where we are. There will be absolutely no oversight, no protection for consumers, no certainty in the marketplace, and that’s unacceptable.”
Speaking of the Clarity Act, the bill aims to firmly categorize tokens and define how digital assets are regulated. Mainly, it will establish whether cryptocurrencies fall under the SEC (securities) or the CFTC (commodities) jurisdiction.
On the other hand, the GENIUS Act is all about stablecoins, where issuers will be legally obligated to maintain a 1:1 reserve for their digital tokens. This means that for every stablecoin released, they must possess an equal value in backing assets. Additionally, AML (Anti-money Laundering) and KYC (Know Your Customer) compliance will be required.
Although the US House experienced delays in its proceedings due to internal GOP disagreements about clauses targeting central bank digital currencies, the two mentioned crypto bills, along with the Anti-CBDC Surveillance State Act, saw progress late yesterday.
By some calculations, the House is expected to pass the GENIUS Act before the end of the current week.
A turning point for crypto in the US
If these laws pass, they’ll lay the groundwork for US competitiveness in the global crypto landscape.
With the Clarity Act, big institutions such as BlackRock, JPMorgan, and the rest would likely feel more confident engaging with crypto markets, knowing the regulatory landscape is no longer a gray area.
Alternatively, the GENIUS Act could lead to increased stablecoin adoption in payments, remittances, and DeFi. Plus, US stablecoins could compete more directly with offshore options like Tether.
Finally, the Anti-CBDC Surveillance State Act would prohibit the Fed from launching a US CBDC (central bank digital currency), slowing down any plans for a government-issued digital dollar. This may benefit decentralized, non-sovereign cryptocurrencies like Bitcoin and privacy coins.
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