At the end of a three -hour hearing Last month, Senator Ruben Gallego, a democrat of Arizona, built a group of Republicans in a hot contested debate. Voted for progress in the brilliant law, a bill supported by the cryptocurrency industry.
“It is clear that digital assets are here to stay,” Mr. Gallego said After hearing the Banking Committee of the Senate. He broke away from the Supreme Democrat of the Committee and described the bill as “step in the right direction”.
The vote, 18 to 6, was only preliminary and developed a bill that would require approval from a full Senate. But in the crypt of the world he celebrated as a moment of justification.
Mr. Gallego is part of the increasingly influential cohort in Congress: recipients of the cryptoviště larges. During the tight race of the Senate last year, he was helped by $ 10 million from Super Pacs financed by three large crypto companies, including the digital currency of Coinbase. Money funded advertising that promoted Mr. Gallego military service and support for boundaries.
Now he and dozens of other lawmakers supported by Super Pac have taken steps in Congress to advance in crypto and pass a number of long -awaited industry victories with a large history of fraud and volatility.
In the Senate, these legislators imposed support for the Act on the Brilliant Act, which would prepare a trip to enterprises to issue Stablecoins, a digital currency designed to maintain the price of $ 1. And in both chambervoted to cancel the rule of era required Crypto companies report some tax information to the Internal Revenue Service.
The industry spends millions of dollars to influence congress is hardly unusual. But Crypto’s political machine, however, emerged for the extent of its expenditure – and the speed of results.
Industry reacted Glee. Expenditures already “bear fruit”, said Josh Vlato, spokesman Fairshake, Super Pac, who worked with two associated PACs to support Pro-Krypto Congress candidates. “This is a complete change in the sea when it comes to the Congress approaching this industry.”
Crypto legislation proceeds just like US regulatory bodies collide back an annual coercive campaign. President Trump’s inauguration has abolished the Securities and Exchange Commission of Litigation against Main Crypt Firms such as Coinbase and Kraken, and raised a legal cloud above the industry. The investor in Crypto, Mr. Trump, signed a executive order last month, called for the creation of a national crypto reserve – government reserves containing bitcoins and other digital currencies.
Stablecoin legislation is prepared to benefit from Mr. Trump’s business interests. At the crypto conference in March said Stablecoins would “expand the dominance of the US dollar” and demand the legal regulations of “common sense”. A few days later, World Liberty Financial, a crypto company that his family helped, announced and begins to sell Stablecoin called USD1.
Stablecoin’s bill could go to the Senate floor in the coming weeks – to the alarm of some democrats who claim that Congress gives industry and Mr. Trump exactly what they want.
The crypto industry “spent a lot of money and many of our members are recipients,” said Maxine Waters from California, the best Democrat in the House Financial Services Committee. “Many of them didn’t have to have time to really explore what we were doing.”
Mr. Gallego was not a sponsor of the brilliant law and stated that it requires fine -tuning. (The full name is the leadership and introduction of the National Innovation Act for American Stablecoins.) But he also defended the bill and stated that it includes protection for consumers.
“Senator Gallego believes it is important to have a place at the table and cooperate with colleagues on both sides,” Jacques Petit, his spokesman, said in his statement. “It remains the priority of the Senator to ensure that the right railings are introduced.”
In an interview, Senator Kirsten Gillibrand, the New York Democrat, who was a co -founder of the brilliant law, said the crypto expenses had no impact on the legislation.
“If you have decided on what you are on the basis of the one who gives you the most money, you would fail as a member of Congress,” said Mrs. Gillibrand, who was not financed by the crypto Super Pac.
During the biden administration, industry hired expensive lobbyists to promote federal legislation without great progress. The 2024 campaign was a turning point.
A group of crypt leaders and political strategists Created Fairytale and Two Associated Super PacsPrevent US jobs and protect progress that has spent over $ 130 million to influence tight congress races across the country. The expenses were mainly financed by Coinbase, the Business Ripple digital currency and Andreessen Horowitz, which financed more than 100 cryptoports.
Candidates supported by Super Pac won 53 out of 58 races. In Ohio, US jobs spent $ 40 million in support of Bernie Moreno, a Republican cryptopoinceric entrepreneur who did not relieve Senator Sherrod Brown, a democratic chairman of the banking committee and an open crypto critic. Protect the progress to spend $ 10 million to help Elissa Slotkin, democraty, gained a chair in Michigan. And another $ 10 million from Super Pacs increased Mr. Galleg who spoke favorably About crypto in the past.
Since then, the industry has decided to transfer this election victory to legislation. Managers in companies such as Coinbase, Ripple and Binance, a giant exchange that settled criminal charges with the US government in 2023, descended on Washington, met legislators and posed for photographs on the American chapter.
Their first priority is the rules for setting the Stablecoins Act. The second is the legal regulations of the “market structure” that would ensure that most cryptocurrencies would not be subject to Criminal Disputes of SECs that have interfered during the bidden years.
Many legislators supported by the Krypto Super Pac are located to develop these goals. Mr. Moreno, Mr. Gallego and Senator Jim Banks, Republican Indiana, who was supported by PAC, serves in the Banking Committee of the Senate. Mr. Gallego is also the Supreme Democrat in the new Senate Subcommittee devoted Crypto.
The bill on the structure of the market crypto is still in works. However, a group of senators, including the Senator Tim Scott, a Republican Republican in South Carolina, chaired by the Banking Committee, in February presented the law on genius.
In some respects, companies that issue stablecoins are similar to banks. Coins should be supported by assets that the issuer holds in reserve: if the company sells one million stablecoins, it should have $ 1 million in a vault so that customers can apply the coins whenever.
Over the years, however, the cryptons have been examined for not having sufficient reserves. At the same time, Stablecoins have become a useful tool for criminals who want to move money across the border.
Theoretically, the law of genius deals with these problems by outlining the rules for Stablecoin issuers. In February, however, the coalition of consumer groups called The bill “The list of wishes of the crypto industry, not a reasonable regulatory regime”. They claimed that the requirements of the law were too free and would create great risks for customers.
Even some of the cryptoviště enthusiasts expressed reservations. The provisions in the brilliant law would allow overseas companies to bypass some of its requirements.
When the bill ceded from the Banking Committee of the Senate, four Democrats than Mr. Gallego, of which no one received support from Fairshake, also voted for him together with Mr. Moren, Mr. Banks and 11 Republicans who were not supported by the Krypto PAC.
A similar law, a stable act, was presented In the house last month, Democrats made them worry that new rules could be beneficial for Mr. Trump’s business.
“The United States President should not use the power of the office to create a business that is enriched,” Mrs. Waters said.
But after a marathon hearing on April 3, the House Financial Services Committee voted 32 to 17 move the account to the full chamber.
The chairman of this committee is a representative French hill, a Republican from Arkansas-Dlouhotený crypto, co-founder of the Stablecoin law and The recipient $ 100,000 for Fairshake’s expenses.
