US Senators Oppose New GENIUS Act Version Over Security Concerns – Coincu

US Senators, including Ruben Gallego, announced their objection to the updated GENIUS Act version last week. The senators labeled insufficient anti-money laundering provisions as a key issue of concern, posing challenges to the updated GENIUS Act’s progression.

Senator Ruben Gallego and nine other US senators publicly opposed the updated GENIUS Act version. This group included Democratic senators Warner, Kim, and Blunt Rochester, who initially backed the bill’s original draft during the March Banking Committee review. Angela Alsobrooks, the bill’s co-sponsor, did not join them in this stance. Despite previous support, Senators were firm on their stance due to perceived deficiencies in the updated draft regarding anti-money laundering and national security. These issues, they argue, could hinder the safe and regulated roll-out of the digital asset market across the nation.

Senators Voice Concerns on Anti-Money Laundering Measures

Several senators emphasized the importance of a robust regulatory framework for cryptocurrency, highlighting gaps that could potentially affect national security and the safety of the financial system. Experts suggest implications might be profound, with potential slowdowns in institutional participation within the US crypto sector.

We cannot support the current version of the GENIUS Act due to its insufficient anti-money laundering provisions and concerns regarding national security and the safety of our financial system.

“We cannot support the current version of the GENIUS Act due to its insufficient anti-money laundering provisions and concerns regarding national security and the safety of our financial system.” — Senator Ruben Gallego

Impact of Regulatory Uncertainty on Crypto Markets

Did you know? In past scenarios, regulatory scrutiny like that around the GENIUS Act has historically caused temporary price dips in high-cap cryptocurrencies but often rebounded once clarity returned.

Ethereum (ETH) currently trades at $1,830.29 with a market cap of $220.98 billion, as per CoinMarketCap. Its 24-hour volume shows a 21.49% decrease, holding a 7.44% market share. Over the past 90 days, ETH witnessed a 29.03% dip, emphasizing recent volatility.

Coincu’s research indicates that continued regulatory uncertainty could deepen market liquidity concerns. Potential financial and technological hurdles may arise, but with clear guidelines, US-focused crypto activities could stabilize and regain prior investment levels.