[Pages S3332-S3335]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                               GENIUS Act

  Mr. MERKLEY. Mr. President, we are living in a time of open 
government corruption that few of us thought could occur here in the 
United States of America. We sometimes recognize it and expect it in 
countries far away where authoritarian figures take a slice of every 
contract that moves through the government but not here in the United 
States of America, and yet here we are.
  President Trump has planted a ``Government for Sale'' sign on the 
White House lawn, and individuals and foreign governments are funneling 
money into his pocket and his family's pocket in order to gain access 
and influence.
  The GENIUS Act attempts to set up some guardrails for buying and 
selling a type of cryptocurrency--one type--called a stablecoin. We 
need guardrails that ensure that government officials aren't openly 
asking people to buy their coins in order to increase their personal 
profit or their family's profit.
  Where are those guardrails in this bill? They are completely, totally 
absent. The GENIUS Act doesn't set up guardrails for the President or 
the Vice President. It doesn't set up guardrails that prevent an open 
invitation for people to buy access and influence by buying cryptocoins 
that increase the wealth of elected officials. Without such a 
guardrail, this bill should never pass.
  We have the opportunity now to debate anti-corruption amendments, but 
I understand the majority leader has decided to cancel any amendments 
from being considered here on the floor of the Senate. Whether those 
are amendments that protect the consumer from scams in which seniors 
are directed to go and change their cash for cryptocoins at an ATM--a 
new way of sending their money overseas that doesn't go through a bank 
teller who might possibly warn against a scam;

[[Page S3333]]

whether it is plugging the many holes in this bill in order to have a 
proper regulatory framework; or whether it is to address the open 
corruption, none of those amendments are going to be considered--not a 
one--after the majority leader promised an open amendment process.
  I would say to my colleague: If you promise an open amendment 
process, deliver it because people made votes on the motion to proceed 
to this bill based on that promise, and now you have broken it. That is 
a breach of trust. It is simply wrong in this body, where your word is 
your bond.
  Now, I understand that you changed your mind because you didn't like 
one of the amendments your own Member proposed. Your own Republican 
caucus Member proposed an amendment you didn't like--a convenient 
opportunity to prevent this body from debating a whole set of important 
ideas related to this bill to protect consumers, to have better 
regulatory safeguards, and to end the corruption that is so evident 
right now.
  Even at this last moment, I would say: Colleagues, vote against 
ending debate on this bill because without those votes to protect 
consumers, to increase the safeguards for regulation of this industry, 
and to address the corruption, this bill shouldn't go forward. So vote 
against it, and restore the vision the majority leader laid out that we 
would have that type of debate on this bill when the motion to proceed 
was voted on.
  The public deserves us having that debate as well. And shouldn't they 
know where we stand on these issues? Because that is the feedback loop 
for the next election: Where do we stand?
  But if we dodge having a real debate on real issues on the floor of 
the Senate, they don't know where we stand on improving the regulatory 
safeguards; they don't know where we stand on blocking the personal 
scams ripping off our seniors; they don't know where we stand on the 
crypto scams that we are becoming so familiar with.
  You have all heard of a meme coin. Maybe you haven't. A meme coin is 
basically a digital baseball card. And President Trump has one. It is 
called the $TRUMP coin. The $TRUMP coin, you can own. You can buy it. 
You pay a dollar to the Trump family, and you get--well, what do you 
get? Nothing. Nothing. You don't even get an email with a picture of a 
coin, but you think of it like that. You get a register on an 
investment site that shows you now own a dollar coin. You get nothing. 
This coin can't even be used to buy anything.
  So what it is, is the President saying: Give me your money. Open your 
wallet. And I will give you nothing--nothing--of tangible value.
  Maybe the closest approximation would be a digital baseball card. 
That is it.
  Now, he held a dinner at his golf course out in Virginia. For that 
dinner, he said: I am going to invite the 220 people who give me the 
most money by buying my meme coin. Open your wallet. Give me millions 
of dollars. You will get a special dinner, special access, and I will 
give you a digital baseball card.
  Anyone who thinks that those 220 people who spent some $140 million-
plus to attend that dinner were seeking to buy digital baseball cards--
well, we have a London bridge to sell you in the middle of the desert 
in Arizona. Nobody gave the President millions of dollars through 
acquiring his meme coins in order to get a digital baseball card. They 
did it because they knew that was the price to pay for access and 
influence. They were responding to the ``Government for Sale'' sign on 
the lawn of the White House.
  It isn't just conjecture that that is the case. We know it is the 
case because various folks told us. For example, Javier Selgas, CEO of 
Freight Technologies, Inc., announced that his company had bought $2 
million of Trump's meme coins. They had given Trump $2 million. And he 
said: We want to buy $20 million. Whether they did or not, I don't know 
because there is no disclosure. He said ``I want to buy that $20 
million of coins''--that is, to give $20 million to President Trump--so 
he will have a better policy regarding the movement of freight between 
Mexico and the United States of America.
  Thank you to the CEO of Freight Technologies for laying out very 
clearly what everyone knew: This is a scheme to sell influence on the 
U.S. Government, to make the President and his family mega rich.
  There is a second type of coin the Trump family is involved in, and 
this one can be used as currency in international transactions. Now, 
this type of coin--why would you use it? Well, maybe you want to 
launder money. That would be a good reason to use it. Maybe you want to 
smuggle arms around the world. Maybe you want to be involved in drug 
transactions. Maybe you are plotting a terrorist act. Those would be 
good reasons to use a digital coin rather than using dollars or another 
currency that is overseen by basic banking regulations around the 
world. You want a currency where people can't see you buy it, can't see 
you own it. You can buy it here and convert it back into cash somewhere 
else. It is great for money laundering, great for crime.
  So along comes a company called MGX, and that company is headed by 
the National Security Advisor of the United Arab Emirates. That company 
says: Hey, President Trump, we will buy $2 billion of your special 
digital coin that we can use to invest in another company called 
Binance.
  And with this coin, what does the President get? He gets that $2 
billion--or rather his company does--and they put that into 
investments, and Mr. Trump and his family keep the proceeds of those 
investments--even if that investment is only earning 4 percent. Over 
the course of a year, that is $80 million being given to the 
President's family in order to gain influence.
  What did the UAE want? They told us. United Arab Emirates said: What 
we want are AI chips, and we want an AI center in the Emirates. Well, 
that was in March, and then they announced that they are going to buy 
Trump's $2 billion of coins.
  And then what did President Trump do? He went to the Middle East, and 
he said: You know what, I have a great idea: Let's give you AI chips to 
create an AI center in Abu Dhabi--one of the Emirates.
  UAE requested a policy. They bought $2 billion of Trump coins, and 
Trump delivered the policy.
  That is corruption. That is the Mount Everest of corruption. That is 
corruption at a level never seen in the history of the United States of 
America.
  We could vote on an amendment on this bill to end that corruption if 
the majority leader honors his commitment to an open amendment process. 
So I request of the majority leader that he honor his commitment and 
have that open amendment process.
  Otherwise, it is an endorsement of this corruption, and I don't think 
any Member--certainly on this side of the aisle--wants to endorse 
corruption. And I would suggest that I don't think my colleagues on the 
other side of the aisle want to endorse corruption.
  So let's vote on an amendment to end it.
  And certainly, this provision wouldn't apply just to the President 
and Vice President, not just to the senior adviser. It applies to us 
too. We shouldn't be selling meme coins as an open way for people to 
give us personal gifts. Not one of us should be saying: Do you want 
access and influence? Buy my digital baseball card and buy it at high 
volumes, make me a rich man, make my family rich for generations to 
come, and you get special access.
  That is exactly what is going on right now.
  Colleagues, again, this is the moment. We are on a bill related to 
cryptocurrencies. In fact, the entire bill is about cryptocurrencies. 
So let's make this the moment that we actually debate amendments that 
improve the regulatory structure that has been laid out in the bill, 
that proceeds to address some of the consumer scams, including ATMs 
that convert dollars into digital coins being used to scam our seniors 
out of their lifesavings. And, yes, let's debate amendments that end 
this type of crypto corruption.
  Let's rip that sign off the White House lawn that government is for 
sale. Let's never again have a CEO say: I am buying $2 million of 
Trump's coins in order to influence a policy involving trade between 
Mexico.
  Let's never again have a company tied to the Government of UAE say: 
We

[[Page S3334]]

are going to buy $2 billion of Trump coins in order to influence policy 
and get an AI center established in our nation.
  Never, never, never should our government be up for sale in this 
fashion, and this is the moment when we can take that on if the 
majority leader honors his commitment to an amendment process.
  The PRESIDING OFFICER. The Senator from New York.
  Mrs. GILLIBRAND. Mr. President, I rise in support of the Hagerty-
Gillibrand substitute amendment to the GENIUS Act, legislation to 
regulate the cryptocurrency assets known as stablecoins.
  Over the past several years, top U.S. financial regulators--both 
Democrats and Republican administrations--have repeatedly called on 
Congress to do their job: Regulate this new industry; do your work; do 
the oversight; do the accountability; write legislation; and pass a 
law.
  They repeatedly called on Congress to regulate stablecoins, 
recognizing their global role in the global economy. Both 
administrations have recognized that for the United States to remain 
the financial capital of the world, Congress needs to pass clear 
regulatory rules that protect consumers and foster innovation here at 
home.
  I started working on this legislation 3 years ago with Cynthia 
Lummis. This is not a bill written quickly for any reason but to 
regulate an industry that needs rules of the road.
  To date, Congress's failure to act has left the digital asset space 
as a Wild West, where American consumers are vulnerable to scams, and 
businesses are desperate for the regulatory clarity they need to 
compete with foreign countries, foreign entities that do business in 
our markets effectively.
  Doing nothing and protecting the status quo is not only 
irresponsible, it is unacceptable. Unlike the United States, our global 
competitors have moved to regulate the space.
  In 2023, the European Union passed comprehensive cryptocurrency 
regulation, and numerous meaningful provisions went into effect last 
year. China's central bank has been promoting the digital yuan, which 
threatened the U.S. dollar's role as the global reserve currency.
  Global commerce will soon be conducted using stablecoins. It is 
imperative to keep the U.S. dollar as the global reserve currency of 
the world and stablecoins to be pegged to the dollar, not the Chinese 
yuan.
  There is reason for both consumers and small retailers to be 
supportive of this legislation. Stablecoins offer faster, more 
affordable ways to settle transactions that will benefit everyone.
  Earlier this year, Senators Hagerty, Alsobrooks, Scott, Lummis, and I 
introduced the bipartisan GENIUS Act, which is the strongest effort to 
date to regulate and create a clear regulatory framework for the 
payment stablecoin industry.
  It has a number of commonsense provisions relating to consumer 
protections, reserve requirements, illicit finance, national security, 
foreign issuers, separating of banking and commerce rules--just to name 
a few.
  It had an excellent markup in the Senate Banking Committee, where 
Senators had many of their concerns addressed, bipartisan amendments 
were accepted. The result was a true bipartisan product that passed 
with strong bipartisan support, including votes from five Democrats.
  Over time and through subsequent negotiations, this bill has only 
become stronger with several additional improvements to strengthen 
consumer protection, clarify disclosure rules for Members of Congress, 
and implement other changes that close loopholes, prevent money 
laundering, and establish stricter and more specific standards.
  The latest version of this bill earned support from a bipartisan 
majority of both Republican and Democratic members of the Senate 
Banking Committee.
  The strong bipartisan nature of this effort has been demonstrated by 
the fact that the bill has continued to pick up new support with each 
additional vote.
  I am very grateful Senator Hagerty is here. Together, we had a very 
strong bipartisan working relationship. If you could see a document 
itemizing every change that has been made since the minute we 
introduced this bill, it is volumes long.
  It is extraordinary how open this process was; how many Senators were 
able to give serious critical thinking to the bill to make it better to 
bring bipartisan support behind this effort.
  I can't thank Senator Hagerty enough for his leadership, his 
patience, and his willingness to create a bipartisan regulatory 
framework for an industry that desperately needs it.
  I have been in the Senate now since 2009. I have never seen a more 
generous bipartisan process than I saw on this legislation. I have 
never seen a more serious group of Senators get together to try to 
write legislation of first impression than I saw in this process.
  I know the people who are averse to this bill have their own 
political view. I think it is extremely unhelpful that we have a 
President who is involved in this industry, and I would love to ban his 
activity.
  But that does not diminish the excellent work in this legislation. It 
does not diminish the hard work the bipartisan group of Senators put 
into this to make a difference and to write a law that can protect 
consumers, that can protect our financial services industry, that can 
protect the strength of the dollar, and that can protect people who 
would like access to capital.
  Thirty percent of Americans are unbanked or underbanked. Many of 
those Americans have found access to the capital markets and access to 
capital through cryptocurrency and blockchain technologies.
  This stablecoin bill represents the first incident that we are trying 
to make access to capital a reality for more Americans, to have our 
safety and soundness rules, our know your customer rules, our illicit 
finance rules, our protections of a one-to-one dollar banking.
  None of that exists today. Because of the work of this legislation, 
we actually have a regulatory framework that can protect consumers in 
the future.
  I just want to thank Senator Scott and Senator Hagerty for their 
extremely honest and thoughtful approach in working on bipartisan 
legislation, which I am very proud of the effort we have made.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Tennessee.
  Mr. HAGERTY. Mr. President, I ask unanimous consent that I be allowed 
to speak for up to 10 minutes, followed by Senator Scott of South 
Carolina for up to 5 minutes prior to the scheduled rollcall vote.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. HAGERTY. Mr. President, I rise today in support of my 
legislation, the Guiding and Establishing National Innovation for U.S. 
Stablecoins Act--otherwise known as the GENIUS Act.
  I would like to thank Senator Gillibrand for her kind comments and 
her hard work in this and Senator Scott, who so ably chaired our 
committee. And I am very pleased to say that we are at a point now 
where America can actually see a comprehensive and clear regulatory 
framework come to bear for payment stablecoins.
  For too long, the lack of any such framework has forced digital asset 
innovation beyond our borders here in America and into foreign 
countries. It has jeopardized our Nation's financial leadership. And 
frankly, as Senator Gillibrand said, it has put American consumers at 
risk.
  Meanwhile, our slow and outdated payment rails--frankly, rails that 
were developed back in the 1970s and 1980s--have failed to keep pace 
with many other overseas jurisdictions. To modernize our payment system 
and to restore our Nation's competitive edge, we must act now.
  That is why I have introduced the GENIUS Act. This legislation takes 
a commonsense, bipartisan approach to regulating stablecoins. Allow me 
to concisely explain what the GENIUS Act does.
  It clearly defines a payment stablecoin as a digital asset pegged to 
a fixed value backed by U.S. Treasurys and used for transactions.
  It describes clear procedures for institutions to issue stablecoins. 
It establishes a regulatory regime that balances the responsibilities 
of both Federal and State authorities.

[[Page S3335]]

  It implements standards that ensure safety, stability, and consumer 
protection. And it provides rigorous safeguards to deter illicit 
activity, to increase transparency, and to aid the vital work of law 
enforcement.
  These provisions are pragmatic and forward-looking. They both protect 
consumers and promote innovation. And, crucially, they represent 
bipartisan agreement, reflecting that both Democrats and Republicans 
recognize the vast potential of this emerging technology.
  The benefits of stablecoin innovation are immense. By reducing 
friction in the payment process, they can improve the speed and the 
efficiency of cross-border transactions.
  Faster and cheaper transactions can unlock much needed working 
capital for American businesses and provide individuals with more 
effective tools for making international payments.
  Moving aspects of our payment system to the blockchain has been shown 
to increase efficiencies in capital markets. Innovators are constantly 
uncovering transformative use cases, and the rapid pace of innovation 
will only increase with regulatory clarity.
  Stablecoins also advance a vital national interest by driving demand 
for U.S. Treasurys. A recent report forecasts that with a well-crafted 
U.S. regulatory framework, stablecoin issuers could become one of the 
top holders of U.S. Treasurys by the end of this decade. Frankly, it 
could happen even sooner.
  This would strengthen our fiscal position and cement the dollar 
status as the world reserve currency. If we fail to act now, not only 
will these benefits slip away, we will also fall behind in global 
competitiveness.
  Without a regulatory framework, stablecoin innovation will 
proliferate overseas and not in America. And if we fail to act, 
Americans using this new technology will be left with no choice but to 
rely on foreign stablecoins that lack vital consumer protections. And, 
critically, inaction would surrender our leadership to the Chinese 
Communist Party, a party that aggressively advances its own digital 
currency.
  We can avoid this outcome, but only if we all unite behind this 
legislation. In the spirit of patriotic cooperation, I want to thank 
Senator Scott, Senator Lummis, Senator Gillibrand, and Senator 
Alsobrooks who cosponsored an earlier iteration of this bill and who 
have worked hard with me every step of the way to make this a strong 
bipartisan effort.
  And I also extend gratitude to my colleagues on both sides of the 
aisle who supported this legislation in the Banking Committee and 
contributed to the consensus product that we now see before the U.S. 
Senate. We have an opportunity to cement America's financial dominance 
for decades to come and demonstrate that this body can come together 
and pass legislation that benefits our country and its citizens.
  I urge all my colleagues to join me in advancing the GENIUS Act. And 
I urge those watching from afar to view this critical vote for what it 
is, a statement of support for a vital innovative technology and a 
demonstration of our willingness as a body here in the U.S. Senate to 
work for America.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from South Carolina.
  Mr. SCOTT of South Carolina. Mr. President, I rise in support of the 
GENIUS Act. Today is a good day to watch a bipartisan coalition do what 
we were sent here to do: work on behalf of the American people.
  Today, the United States can take a bold and historic step forward 
not just for financial innovation, but also for American leadership, 
consumer protection, and economic opportunity.
  With the bipartisan GENIUS Act, we can do more than just pass a bill. 
We can deliver results for the American people. We can bring clarity 
for a sector that has been clouded by uncertainty, and we can make it 
known: The United States will lead, not follow, in the digital asset 
revolution.
  When I became chairman of the Senate Banking Committee, I promised to 
prioritize innovation, accountability, and smart regulation in the 
evolving digital economy, and we have the opportunity to deliver on 
that promise. The GENIUS Act will be the most significant digital 
assets legislation ever to pass the U.S. Senate.
  It is the product of months of bipartisan work. And I also want to 
thank the bill's sponsor Bill Hagerty, who went out of his way to make 
this legislation a bipartisan success by partnering with Senator 
Alsobrooks, working with Senator Gillibrand, along with our colleagues 
on this side of the aisle, Senator Lummis, and myself. I am incredibly 
proud to see the hard work of Senator Hagerty pay off--not for him but 
for the American people.
  That is what makes this process such a special one. It is what makes 
the U.S. Senate the most deliberative body in the world today. This is 
a victory for working families, small businesses, and everyday 
Americans who deserve faster, cheaper, and safer access to financial 
services. It is a win for innovation because this framework will give 
entrepreneurs the confidence to build here in the United States of 
America and not abroad.
  And it is a win for national security, because the GENIUS Act brings 
stablecoin issuers under strict anti-money laundering standards, 
cracking down on bad actors at home and abroad. Let me be clear, this 
did not happen by accident. It happened because we led.
  To those who said Washington could not act, to those who doubted 
bipartisanship, let's prove them wrong. Let's show that principled 
leadership, conservative values, and common sense can still move this 
country forward together.
  And I would not be complete in my comments if I did not stop and 
thank the Senate Banking staff for their hard work and their 
dedication. It would be incomplete if I did not stop and thank Senator 
Hagerty's staff for their hard work, countless hours; and Senator 
Gillibrand's staff for her dedication and their dedication to this 
issue; and, certainly, Senator Lummis and her staff, who spent 
countless hours making a good product better.
  Let's finish the job and get this bill to President Trump's desk for 
signature.