WASHINGTON — House lawmakers passed the most significant legislation regulating digital currency to date Thursday, approving a trio of bills aimed at revamping the nascent industry.
Lawmakers approved the bipartisan GENIUS Act, which establishes a framework for overseeing the $238 billion stablecoin market — cryptocurrency that is pegged to hard assets like the US dollar — in a 308-122 vote.
The measure is intended to pave the way for banks and other financial institutions to issue stablecoins, giving consumers more options about where to put their wealth.
Critics have warned that the new regulatory framework gives the government too much power over crypto, may endanger the industry’s decentralization, and could lead to certain stablecoins getting unfair regulatory treatment over others.
The bipartisan bill breezed through the Senate in a 68-30 vote last month after weeks of negotiations. But House Republicans had splintered over the measure despite President Trump’s support due to fears that it could pave the way for a central bank-issued or regulated digital currency.
Critics say the Federal Reserve or other government entities could impose massive surveillance capabilities to monitor crypto transactions, similar to practices in countries like China that have central bank digital currencies (CBDC).
