A cluster of Senate Democrats who support cryptocurrency have proposed an amendment to the GENIUS Act, anticipating its failure by design. The intention behind this move is to give the appearance of opposition while covertly assisting the stablecoin bill in its passage. This strategic gesture allows Democrats to maintain a semblance of dissent on a potentially controversial decision, shielding their public image.
The GENIUS Act, a significant legislation aimed at regulating stablecoins, has sparked debate due to concerns about potential corruption and financial system destabilization. Despite apprehensions, the bill has garnered some bipartisan backing and is making progress in the Senate.
Reports indicate that Democrats recently submitted an amendment called the End Crypto Corruption Act to enable the bill to proceed to a vote, irrespective of the amendment's failure. This tactic circumvents the possibility of Democrats using a filibuster to obstruct the GENIUS Act, overcoming a crucial legislative obstacle.
Essentially, this strategy allows Democrats to assert that they made efforts to enhance the bill without obstructing its passage. Dubbed as "Schumer 101" after Senate Majority Leader Chuck Schumer's technique to prevent a government shutdown, this move carries significant symbolic weight.
The amendment serves as a symbolic gesture to provide cover for pro-crypto Democrats who prefer not to overtly endorse the GENIUS Act. It also mitigates the filibuster threat, ensuring that the bill can move forward to a vote and likely be approved despite some public resistance.
With mounting tensions regarding crypto policy, particularly following the prior administration's backing of pro-crypto regulations, partisan divides have deepened. Representative Maxine Waters recently led a Democratic boycott of a crypto policy hearing.
The final vote on the fate of the GENIUS Act is scheduled for next week, with a few Democrats still openly opposing it. While there remains uncertainty, the bill appears poised for success, signaling a significant step forward in stablecoin regulation in the United States.