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SEN. LUMMIS SAYS WASHINGTON IS ‘ON THE PRECIPICE’ OF STABLECOIN AND CRYPTO REGULATION BILLS
▪We’re on the precipice of finally creating a bipartisan legislative framework for both stablecoins and market structure,” said Sen. Cynthia Lummis, R-Wyo. on Wednesday.
▪So far this year in the new Congress, the focus has been on first regulating stablecoins, with both Republican and Democratic lawmakers coming out with bills over the past several weeks.
Just a few months after a new Congress rolled into Washington, lawmakers are starting to get cracking on crypto legislation with hopes that bills can get signed by President Donald Trump by the end of this year.
“We’re on the precipice of finally creating a bipartisan legislative framework for both stablecoins and market structure,” said Sen. Cynthia Lummis, R-Wyo., during a congressional hearing on Wednesday. “I hope we can get both pieces of legislation to President Trump for his signature this year.”
Lummis added that she hoped that would include the Responsible Financial Innovation Act, which she and Democratic Sen. Kirsten Gillibrand have worked on over the years and created a regulatory framework for crypto.
So far this year in the new Congress, the focus has been on first regulating stablecoins, with both Republican and Democratic lawmakers coming out with bills over the past several weeks.
One of those bills is called The Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS Act., which was introduced earlier this month by Senate Banking Committee Chair Tim Scott, R-S.C., Sen. Kirsten Gillibrand, D-N.Y., Sen. Bill Hagerty, R-Tenn., and Lummis. The bill includes reserve requirements and implements “light-touch, tailored regulatory standards for stablecoin issuers.”
Lawmakers asked detailed questions about that bill during Wednesday’s Senate Banking Committee digital assets-focused panel hearing titled “Exploring Bipartisan Legislative Frameworks for Digital Assets.” The panel was created this year and is led by Lummis.
Ongoing discussions
Sen. Tina Smith, D-Minn., asked detailed questions about consumer protections in future stablecoin legislation and asked the witnesses at the hearing whether legislation should require “stablecoin issuers to be vetted for character and fitness” like other financial institutions.
Timothy Massad, former chair of the Commodity Futures Trading Commissioner and witness at the hearing, said the GENIUS Act doesn’t require it and added that it should.
“Similar standards are in the European legislation and in other countries’ legislation,” he added.
On the House side, House Financial Services Committee Chair French Hill, R-Ark., released draft legislation last month that builds on work done in that committee over the past few years with some differences.
For example, it gives the Office of the Comptroller of the Currency the authority to “approve and supervise federally qualified nonbank payment stablecoin issuers ” instead of including a federal path through the Federal Reserve for “payment stablecoin issuers.”
Shortly after, the top Democrat of the committee, Rep. Maxine Waters of California, released a discussion draft that includes language around federal regulators for stablecoins.
Sen. Bernie Moreno, R-Ohio, drew comparisons of crypto to other technologies, such as airplanes and computers, during Wednesday’s hearing.
“The point I’m trying to make is, is why all of a sudden, when we got to digital currencies, did we decide here in Washington D.C. and say no, no we are going to decide the pace of innovation, the way technology should work,” Moreno said.
@ Newshounds News™
Source: The Block
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BANK OF AMERICA CEO REVEALS PLANS FOR US DOLLAR-BACKED STABLECOIN, BUT THERE’S A CATCH
▪Bank of America is eyeing the stablecoin market amid global adoption.
▪The firm said it stayed back earlier because of unclear regulations.
▪BofA hopes to join major tech giants like Paypal with related offerings.
Like other mainstream fintech giants like Revolut and PayPal Holdings Inc (NASDAQ: PYPL) with Stablecoin plans, Bank of America (BofA) is set to introduce its token once regulations permit.
As reported by Fortune, Bank of America CEO, Brian Moynihan, while speaking at the Economic Club of Washington, D.C., discussed the growing importance of digital assets and the potential for stablecoins to function like traditional financial products.
Bank of America and the Stablecoin Plan
During the event, Brian said that stablecoins will likely play a major role in the conventional banking institution.
He further explained that a BofA-issued stablecoin would be fully backed by the US dollar and linked to a deposit account. Eventually, this will enable an easy and smooth transaction process between digital and traditional money.
“If they make that legal, we will go into that business,” he said, adding that the only reason BofA has not yet released its stablecoin is because of the stringent policy of the past administration.
However, he sounded more positive about the present government, saying that he expects major banks to enter the crypto economy once clear rules are in place.
Brian also made it known that irrespective of other digital asset offerings, the firm’s major focus remains on stablecoins. The BofA chief said he believes these tokens would fit perfectly into the current financial system.
Interestingly, this marks a shift from how the organization has viewed the digital asset economy. In 2022, when top Wall Street banks were diving into crypto, the firm’s CEO stated they had no intention of rushing into the space.
Most Money Movement Is Already Digital
Notably, while stablecoins are not yet part of BofA’s services, the financial institution is already transacting electronically. The CEO mentioned that the Bank transacts about $3 trillion online daily through wire transfers, ACH payments, and card transactions.
He pointed out that consumer spending is now largely digital, with services like Zelle and credit cards far outpacing cash usage. However, he acknowledged that cash remains essential for many people and businesses.
“ATMs and branches are still needed,” he said, despite the shift toward digital payments.
For context, reports show that the bank has invested large amounts of money in emerging technologies.
The expenditure is around $4 billion annually on new developments and another $8–9 billion on system operations. Per the report, the bank was an early adopter of mobile banking, launching its iPhone app before competitors. Today, about 90% of customer interactions happen digitally, supported by AI-powered tools like its virtual assistant, Erica.
Still, Moynihan emphasized the importance of human interaction in banking. With 3,700 branches nationwide, BofA continues to serve customers who prefer face-to-face assistance.
He stressed that digital convenience must be balanced with personal service, as many people seek expert advice on financial planning and major transactions.
@ Newshounds News™
Source: CoinSpeaker
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