US Banks “Tanking” Stablecoin Law? Ripple CTO Schwartz Agrees
The post US Banks “Tanking” Stablecoin Law? Ripple CTO Schwartz Agrees appeared on BitcoinEthereumNews.com.
Fear has been cited as the main reason why banks may be the main culprit Earlier this month, the GENIUS Act failed to pass a full Senate vote, as the bill didn’t get the 60 votes needed Nine Senate Democrats were against it, along with two of their Republican peers There is a discussion going on among crypto enthusiasts, with the topic being that someone is adamant about tanking the stablecoin legislation. The main suggested culprits are regional US banks, and Ripple’s CTO David Schwartz seems to agree, saying: “That’s what I’m hearing.” Fear has been cited as the main reason why this may be true. Banks fear stablecoins could disintermediate their market share, with critics like Senator Elizabeth Warren proposing amendments to block tech firms from issuing stablecoins. This just highlights tensions between traditional finance and crypto innovation. The notion isn’t anything new, as it’s been talked about before how traditional banking institutions perceive stablecoins as a competitive threat to their dominance in payment systems. This also explains why the stablecoin bill GENIUS Act failed in its recent vote. GENIUS Act One of the main legislations surrounding stablecoins is the GENIUS Act. Short for ‘Guiding and Establishing National Innovation for US Stablecoins’, it seeks to regulate stablecoin issuers and integrate them into the US financial system. Two months ago, the GENIUS Act passed the Senate Banking Committee with an 18-6 vote to regulate stablecoins comprehensively. However, earlier this month, it failed to pass a full Senate vote, as the bill didn’t get the 60 votes needed due to nine Senate Democrats withdrawing their support, as well as two of their Republican peers. Some mentioned the insufficient anti-money laundering provisions and potential national security risks as reasons for withdrawal, while other reasons were reports of Donald Trump’s ties to crypto…
Filed under: News - @ May 14, 2025 9:22 pm