US Senate Democrats Criticize Stablecoin Bill Draft for Lack of Consumer Protections

Crypto in America host Eleanor Terrett reported on the 19th (local time) via X (formerly Twitter) that Democratic members of the US Senate Banking Committee released a staff analysis report on the draft of the so-called 'Genius Act', known as the Stablecoin Bill.

In the report, the lawmakers pointed out that "the bill does not prohibit President Trump from profiting through his own stablecoin and allows Elon Musk's X to create 'X Money'."

They also added that "there is a concern that the loopholes in Tether, which is often misused in crimes, could be expanded, and notably, the bill lacks substantial consumer protection measures."

The Genius Act includes provisions requiring stablecoin issuers to obtain licenses, maintain 100% reserves, and fulfill disclosure obligations, and it is drawing attention as it could become a regulatory benchmark for stablecoins in the US.