XRP lawyer John Deaton warns crypto laws could stall until 2029 if the GENIUS Act on stablecoin rules fails in the U.S. Senate.
According to XRP counsel John E. Deaton, no significant crypto legislation may exist before 2029 if the Stablecoin bill, the GENIUS Act, fails to pass the US Senate. The lawyer, recognized for his involvement in the XRP legal case, stated on social media that the Senate’s inaction could postpone the regulatory clarity required for the digital asset sector.
Deaton asserted that the measure intended to regulate stablecoins is non-controversial and serves national interests. Nevertheless, he expressed apprehension that if legislators cannot pass this bill, other more intricate crypto bills, such as market structure legislation, the Lummis-Gillibrand bill, or tax reforms, are unlikely to be successful soon.
The GENIUS Act is primarily concerned with the regulation of stablecoins
The GENIUS Act, which Senator Bill Hagerty is spearheading, aims to establish a legal framework for issuing stablecoins in the United States. The bill aims to guarantee that issuers maintain high-quality reserves to safeguard users and enhance transparency.
During an interview on CNBC’s “Squawk Box,” Senator Hagerty stated that the “Stablecoin bill will provide regulatory clarity and encourage dollar-backed innovation in the United States.” He clarified that the absence of distinct regulations has resulted in numerous crypto-related projects being relocated to foreign countries. The measure aims to reverse this trend by establishing a transparent regulatory framework for stablecoin issuers.
He further stated that the market has been confused due to the use of SEC enforcement actions to regulate digital assets. The bill could enhance the legal comprehension of consumers and businesses by implementing a formal structure. According to Senator Kirsten Gillibrand, the Stablecoin regulation may be enacted this week, despite the concerns.
The GENIUS Act is experiencing an increase in industry support
The GENIUS Act, a Stablecoin bill, has garnered the support of numerous figures in the digital asset sector, despite allegations of fraud and corruption against US President Donald Trump. Faryar Shirzad, the Chief Policy Officer at Coinbase, declared that the passage of stablecoin legislation is a “national priority.” He emphasized that the United States must be the leader in blockchain-based finance and ensure that stablecoins tied to the US dollar remain dominant.
Shirzad stated on X that stablecoins can exert pressure on traditional financial systems; however, competition is essential. He likened the current situation to the introduction of money market funds in the 1970s and 1980s, asserting that the banking sector could adapt, as it did then.
Shirzad also stated that the GENIUS Act would ensure that the United States remains at the forefront of international finance and that the dollar’s global influence would strengthen. He emphasized that the bill extends beyond technology and promotes fiscal strength and national strategy.
Despite the bipartisan support, challenges persist
Even though the Stablecoin bill has the support of both main political parties, there are still obstacles. Senator Hagerty observed that legislators who advocate for centralized financial control frequently express opposition. Critics, such as Senator Elizabeth Warren, have advised caution and have raised concerns regarding the potential for the measure to diminish regulatory authority or increase financial risks.
According to John Deaton, an attorney for XRP, the measure does not permit stablecoin holders to receive yield, which he considers a deficiency. Nevertheless, he recognized that banks would likely resist any yield-bearing version due to competition with deposits. He wrote, “The Bank Lobby is a genuine location.”
The bill is anticipated to be voted on by the Senate in the near future. The momentum for other crypto-related endeavors may be diminished if the legislation fails. Without stablecoin regulation, broader reforms, such as BitBonds or crypto tax laws, may not be implemented until the subsequent administration, according to XRP counsel John Deaton.
