U.S. Congress Debates Crypto Legislation Amid Defense Spending Focus
According to Cointelegraph, the U.S. Congress commenced what has been termed "crypto week" on Capitol Hill, with Republicans advocating for digital asset legislation while Democrats criticized the initiative as a guise for crypto "corruption." However, the initial discussions quickly shifted from cryptocurrency to defense spending.
During a Monday session of the U.S. House Committee on Rules, Massachusetts Representative Jim McGovern delivered a scathing opening statement targeting Republican lawmakers and U.S. President Donald Trump for their efforts to advance three crypto-related bills: the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS), the Digital Asset Market Clarity Act (CLARITY), and the Anti-CBDC Surveillance State Act. McGovern labeled the bills as the "GOP’s crypto giveaway," condemning them for providing "weak and ineffective" regulatory measures that could potentially harm investors.
McGovern expressed his disapproval by stating, "I have not had one person in my district come up to me and say, ‘please, please Jim, make it easier for crypto millionaires to get richer, please make it easier to con people,’ yet that is exactly what is going on here." He further argued that the legislation is not about innovation but rather corruption, alleging that the bills offer preferential treatment for Trump's personal crypto ventures.
North Carolina Representative Virginia Foxx, chair of the committee, initiated the session with a broad overview of the three crypto bills alongside the Department of Defense Appropriations Act. She emphasized the significance of the GENIUS Act, suggesting that Republicans might prioritize the stablecoin bill over market structure and CBDC regulation. Foxx stated, "This legislation is historic, and it will help propel responsible innovation within America and lead us to securing an even stronger foothold within the global financial system."
The passage of these crypto bills may require bipartisan support, as Republicans hold a slim majority in Congress. Many Democrats, including Representative Maxine Waters and Senator Adam Schiff, have opposed the legislation, citing potential conflicts of interest involving the president's family-backed crypto company, World Liberty Financial, its stablecoin USD1, and his memecoin, Official Trump (TRUMP).
As of the latest update, discussions in the House committee have shifted to the Department of Defense Appropriations Act, but are anticipated to return to digital assets shortly. Republican House leaders have indicated their intention to pass all three bills before the congressional August recess, leaving them with less than two weeks to achieve this goal.
