Day 4 of “Crypto Week” in the U.S. House of Representatives has intensified political rivalries, with Democrats and Republicans squabbling over main digital asset legislation. Thursday attention was on the Clarity Act, the GENIUS stablecoin bill, and the Anti-CBDC Surveillance State Act — all held up due to conflict over amendments and executive authority.
Stablecoin Bill Sparks Debate Over Consumer Protection
Republican French Hill said the GENIUS Act ensures U.S. competitiveness by including strong consumer protections and anti-money laundering controls. Democratic lawmakers, however, raised concerns that the bill permits stablecoins to be backed by uninsured deposits, threatening financial stability.
Waters warned that such backing may lead to bank runs and taxpayers paying for eventual bailouts. “This bill allows uninsured deposits,” she said. “That destabilizes the system.”.
Executive Branch Involvement Becomes a Flashpoint
Executive branch involvement has been one of the contentious issues of debate. Waters rebuked the GOP for not extending bans on issuing or marketing stablecoins to include the president and vice president. “They’re the only elected officials not banned,” she said, implying possible conflicts of interest relating to the Trump family’s crypto activities.
This issue picked up speed with the introduction of Senator Adam Schiff’s COIN Act to ban executive officials from benefiting from engagement with digital assets.
CBDC and Surveillance Issues Persist
Lawmakers also debated the Anti-CBDC Surveillance State Act, which would limit the Federal Reserve from creating a central bank digital currency. Republicans overall supported the bill as an antidote to surveillance problems, but Democrats argued it hurts innovation as well as central banking power.
What’s Next?
As Congress approaches Crypto Week’s end, legislative momentum is at stake. With partisan differences rising, above all over issues of executive responsibility and reserve requirements for stablecoins, crypto legislation’s future remains uncertain.
