U.S. Representative French Hill, along with fellow House colleagues, is observing the legislative process surrounding the Digital Asset Market Clarity Act as it undergoes significant revisions by senators. Both Hill and Senator Cynthia Lummis have emphasized the importance of reshaping Congress’s earlier efforts concerning stablecoins in this overhaul.
The recent enactment of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act marks a key milestone for the cryptocurrency sector and its advocates in Washington. Federal regulators are now tasked with rolling out oversight mechanisms for U.S. stablecoin issuers based on this new legislation. However, the House’s passage of the Clarity Act this year intertwined modifications to the GENIUS Act with its provisions on cryptocurrency market structure.
Notable changes proposed in Section 512 of the Clarity Act include enhanced accountability measures for CEOs and CFOs, requiring them to legally disclose accurate financial data and mandating annual audits from accounting firms to bolster internal controls. Additionally, there are stricter rules preventing non-financial companies from entering the stablecoin market. The legislation also assures U.S. investors the right to manage their digital assets through hardware or software wallets and engage in peer-to-peer transactions.
Hill remarked at CoinDesk’s Policy and Regulation event that these amendments aim to fortify the GENIUS Act, building upon the groundwork laid in the House. Senator Lummis, a key advocate for cryptocurrencies and head of the Senate Banking Committee’s subcommittee on digital assets, indicated that she expects modifications to the stablecoin law within the Senate’s upcoming market structure bill while expressing respect for the House amendments.
During a recent gathering at the Cato Institute, Hill reiterated his preference for the House version but affirmed that collaborative efforts between the two chambers produced specific amendments to the GENIUS Act, incorporating them into the Clarity Act.
The Senate Banking Committee’s Republican members have recently circulated a draft bill, with some senators, including Lummis, optimistic about finalizing it by the end of this month. However, skepticism has surfaced from committee member Senator John Kennedy of Louisiana, who has raised concerns regarding the Senate’s progress compared to the House. Hill remains hopeful, noting that Senate work teams from both parties are actively collaborating to advance the legislation.
Those advising the administration on cryptocurrency, including Tyler Williams from the Treasury Department, have set a timeline aiming for the market structure initiative to be enacted as law by year-end, a target echoed by Lummis.
