[Congressional Record Volume 171, Number 105 (Wednesday, June 18, 2025)]
[Senate]
[Page S3465]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GENIUS ACT
Mr. VAN HOLLEN. Mr. President, yesterday I voted against final
passage of the GENIUS Act. I think the majority of my colleagues agree
that we need sensible regulation of cryptocurrency and stablecoins to
protect consumers, safeguard our financial system, and close down their
use in illicit finance of criminal activities that jeopardize our
security. But this bill missed the mark and was pushed through without
the opportunity to vote on several amendments that would have
strengthened it.
Stablecoins have been called ``the new kingpin of illicit activity''
as a tool of money laundering, payment in ransomware attacks, and
financing for criminal and terrorist activity. The bill purports to
bring stablecoins into the Anti-Money Laundering regulatory regime, but
does not adequately enforce those requirements at a time when the Trump
administration is rapidly dismantling crypto investigation and
enforcement units at the Department of Justice and SEC. It fails to
address crypto ``mixers,'' which make it more difficult to trace
illicit transactions; instead, it calls for further study of the issue.
And it includes a loophole to allow Tether, a foreign stablecoin issuer
that has been used to help Russians evade U.S. sanctions, to have
access to U.S. markets. Several Senators put forward amendments to
address these national security risks, including Senator Peters, who
offered a change that would create a system for tracing stablecoin
transactions that is similar to the way we track other financial
transactions. The majority leader did not allow consideration of any of
these amendments.
The GENIUS Act fails to adequately protect consumers or our financial
system, allowing risky assets to provide the required 1:1 peg for
stablecoins, limiting the number of issuers subject to financial audit,
and failing to give the Consumer Financial Protection Bureau clear
authority to offer the same protections from fraud a consumer has when
using a bank account. There were amendments to fix these issues; they
did not get a vote.
But perhaps most egregiously, this GENIUS Act does nothing to
constrain President Trump's rampant crypto corruption. It does not
address the meme coin the President marketed in exchange for access to
an exclusive dinner. And it doesn't address the President's family
stablecoin, which has already been used by a state-owned Emirati
company to execute a $2 billion transaction. It is clear that anyone
who invests enough in the President's crypto schemes--including foreign
governments--will have access to the highest levels of our government.
Senator Merkley offered an amendment to ensure that no government
official--not the President, not Members of Congress--can issue
stablecoins or other cryptocurrencies. The majority leader blocked its
consideration.
We have experienced the dangers that weak regulatory structures have
posed to consumers, investors, and our financial system. We have paid
to bail out industry after those systems have failed. We had an
opportunity to strengthen the GENIUS Act, build safeguards around a
growing sector, and stamp out its use in corrupt and criminal
activities. Instead, we barreled forward without even a vote on those
amendments. Because we could not make those critical improvements, I
voted against the bill.
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