Washington, DC – Senator Lisa Blunt Rochester (D-Del.) released the following statement following her vote supporting the procedural motion to advance the GENIUS Act, legislation that would create a framework for stablecoins within the U.S. financial regulatory system:
“Last night, I voted to advance the GENIUS Act with the hope that we could make more progress toward improving the bill. While good-faith bipartisan negotiations addressed some of my serious concerns, it does not include all of the necessary changes to protect consumers, protect the stability of the financial system, and prevent fraud and criminal enterprises from using stablecoins. I also believe this legislation still falls short of addressing the clear and obvious potential for corruption and grift by the President and his family.
“Make no mistake: my vote yesterday represents my willingness to continue negotiating with my Republican colleagues and I’m hopeful that we can engage in a robust floor amendment process. While I am supportive of innovative technology in our financial system, I believe the bill simply must do more to protect underbanked and financially vulnerable Americans from being targeted by deceptive marketing schemes.
“Additionally, this bill must close loopholes that allow companies affiliated with stablecoin issuers to offer financial incentives that look like interest, without being held to the same protective standard as banks. I’m also interested in seeing stronger language around anti-money laundering protections to ensure foreign or loosely regulated issuers cannot be used by terrorists and criminal organizations to move money around.
“Finally, I remain seriously concerned about the financial conflicts of interest in the Trump family. Considering President Trump’s most recent bout of self-dealing, we should enact provisions that disallow the President, Vice President, and their immediate families from benefitting financially from any stablecoin or digital asset issuer regulated under the legislation.
“There is no denying that currently, the stablecoin market is an underregulated landscape with inadequate protections for consumers and could be a breeding ground for bad actors and market instability. Stablecoins are likely to be a growing part of the financial landscape of the 21st century, so it is crucial that Congress gets this right. The GENIUS Act must be improved to receive my support.”
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Senator Lisa Blunt Rochester represents Delaware in the United States Senate where she serves on the Committees on Banking, Housing, and Urban Affairs; Commerce, Science, and Transportation; Environment and Public Works; and Health, Education, Labor, and Pensions.