Senator Cynthia Lummis has articulated that the stablecoin framework is designed to safeguard users, emphasizing that "Machiavelli" will not be resurrected to issue them. Lummis made this statement in a March 13 post on X.
"I want to assure everyone, Machiavelli is not going to be raised from the dead to issue stablecoins," said Lummis. "This is an innovative financial product that will safeguard users, not some mechanism to destroy our country like some of my colleagues across the aisle claim."
Senators Bill Hagerty (R-TN), Cynthia Lummis (R-WY), Kirsten Gillibrand (D-NY), and House Banking Committee Chair Tim Scott (R-SC) have introduced the GENIUS Act, which aims to regulate payment stablecoins. This legislation builds upon the Lummis-Gillibrand Payment Stablecoin Act proposed in April 2024. The GENIUS Act classifies permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act and limits payment stablecoin issuance in the United States to approved issuers. These include subsidiaries of insured depository institutions, federally qualified nonbank issuers, and state-qualified issuers, as said by Congress.gov.
Sen. Lummis' post
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According to the American Bar Association, stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to reserve assets, typically fiat currencies like the U.S. dollar. While the European Union has introduced regulations for these digital currencies, the United States lacks comprehensive federal legislation, although some states have enacted their own laws. Stablecoins are used for transactions and trading and come in various forms such as fiat-backed, commodity-backed, crypto-backed, and algorithmic types. Their market has expanded significantly, reaching approximately $159 billion in 2024. International regulatory considerations may influence domestic frameworks due to the cross-border nature of stablecoin transactions.
Lummis has been appointed by Senate Banking Committee Chair Tim Scott as the first chair of the Senate Banking Subcommittee on Digital Assets. The subcommittee will focus on advancing bipartisan digital asset legislation aimed at promoting innovation while protecting consumers. It will address issues such as market structure, stablecoins, and a strategic bitcoin reserve. Additionally, it will oversee federal financial regulators to ensure compliance with laws and prevent initiatives like Operation Chokepoint 2.0, according to a press release by Lummis.
Lummis was sworn into the U.S. Senate on January 3, 2021, becoming Wyoming's first female senator. She previously served in the U.S. House of Representatives from 2008 to 2016 where she was a founding member of the House Freedom Caucus and focused on fiscal issues and Western policies, according to Senate.gov.
