Senators Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.) are poised to introduce groundbreaking legislation on stablecoins.
The bill’s success could herald a new era of financial innovation and stability, aligning with the dynamic needs of the digital economy.
How New Stablecoin Bill Aims to Eradicate MalpracticesThe Senators’ announcement at the Bitcoin Policy Summit in Washington marks a pivotal moment in cryptocurrency regulation. According to Forbes, the Senators plan to unveil the bill later this week or next week.
Amid the regulatory turmoil affecting companies like Coinbase and Binance, this legislative effort is timely. It also addresses the ongoing disputes between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). These agencies have been at odds over crypto classification and control.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
Gillibrand and Lummis, leveraging their expertise, previously advocated for the Responsible Financial Innovation Act. This act sought to establish a comprehensive regulatory framework for crypto assets. Moreover, it proposed classifying most cryptocurrencies as commodities, thus under the CFTC’s jurisdiction.
Nonetheless, the new stablecoin bill aims to enhance industry integrity and allows nondepository institutions to issue stablecoins under strict regulatory conditions. Consequently, this ensures the industry’s safety and promotes innovation.
“We’re making sure that state and federal regulators have the oversight authority to weed out bad actors while still promoting growth and innovation. And we’re requiring that all issuers make sure that the reserves are back to one-to-one,” Gillibrand said.
The bill outlines two issuance paths for stablecoins. Depository institutions could issue them, following federal and state bank charter regulations. Alternatively, non-depository institutions would be under federal oversight, with states playing a significant regulatory role.
Gillibrand emphasizes the bill’s balanced nature, which is crafted through compromise. It seeks to align the interests of the state entities and the crypto sector.
The stablecoin legislation represents a broader vision for the cryptocurrency market’s integration into the financial mainstream. Stablecoins, as per Gillibrand, could be the regulatory keystone. They might unlock the full potential of cryptocurrencies, leading to a more inclusive financial system.
Read more: A Guide to the Best Stablecoins in 2024
Moreover, ongoing negotiations highlight the importance of bipartisan and bicameral support. Key political figures, including Patrick McHenry (R-N.C.) and Maxine Waters (D-Calif.), are actively involved in these discussions. Previously, these lawmakers have maintained a crypto-friendly stance.
Senator Elizabeth Warren Slams Push For Stablecoin Bill, Cites National Security Risks
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Senator Elizabeth Warren criticized the push for a stablecoin bill without anti-money laundering laws in place, citing national security concerns, a Monday letter to House Financial Service Committee Chairman Patrick McHenry (R-NC) and Ranking Member Maxine Waters (D-CA) revealed.
Stablecoin Bill Could Increase Risks, Warren WarnsThroughout the recently published letter, Warren argued that creating new regulatory frameworks for stablecoins could “amplify and entrench” risks they pose to the American banking sector.
As Congress returns this week and crypto returns to the convo, Sen. Warren is out with a letter to Reps. McHenry and Waters throwing cold water on the idea of a stablecoin bill.
“Efforts to create new regulatory frameworks around the $157B stablecoin market, including those… pic.twitter.com/9LJsb3ye0v
— Alexander Grieve (@AlexanderGrieve) April 9, 2024
In part, Warren claims that stablecoins pose a threat to consumers and the banking system at large, including payment system destabilization, national security risks, and more.
“Policymakers should be weary of efforts to integrate stablecoins into the formal banking system – or extend any of the concomitant safety net protections to stablecoin issuers – without strong rules that ensure safety and soundness,” the senator wrote.
Senator Elizabeth Warren Pushes For DAAMLA, Cites National Security Risks News of Warren’s letter follows McHenry’s 2023 yet-to-be-passed “Clarity for Payment Stablecoins Act,” which would see increased regulation on stablecoin cryptocurrencies, similar to traditional financial institutions.
Just yesterday, Warren furthered her efforts to pass DAAMLA during a Senate hearing entitled “An Update from the Treasury Department: Countering Illicit Finance, Terrorism and Sanctions Evasion,” where she claimed that the U.S. “doesn’t have the right anti-money laundering laws in place” if it’s going to advance stablecoin regulation efforts.
“If we are going to create new on ramps, increasing traffic, which is exactly what the House bill does, then we need a regulatory framework that will put the rules for Anti-Money Laundering in place so that we do not have more opportunities for Iran and terrorists and drug lords and human traffickers to make more money,” she said.
Warren has long been a staunch anti-crypto advocate, going so far as to draft the controversial “Digital Assets Anti-Money Laundering Act” (DAAMLA) in 2022, which would see key players in the crypto industry such as miners, validators, and providers face stringent oversight rules.
“Name your bad guy and crypto is the way they can move money around,” she said during Tuesday’s hearing.
A Stablecoin Bill in 2024?During an interview with CNBC earlier this year, longtime stablecoin legislation advocate and Circle CEO, Jeremy Allaire, said he believes there is a “good chance” stablecoin legislation will get passed in 2024.
😍📃 Circle CEO Jeremy Allaire Expects US to Pass Stablecoin Legislation in 2024
Here’s a shortcut👇
— Cryptonews.com (@cryptonews) January 16, 2024
“I think there’s momentum,” Allaire said. “I think there’s a very good chance of seeing this pass into law this year.”
Warren’s letter to Waters and McHenry signals her unwavering determination to regulate crypto, but the extent of lawmaker consensus is yet to be determined.
Although many members of the cryptocurrency community had been looking forward to the United States Securities and Exchange Commission (SEC) finally approving spot Bitcoin (BTC) exchange-traded funds (ETFs) as the sign of the crypto assets’ wider acceptance, not everyone is on board.
As it happens, renowned investor and author of the best-selling personal finance book ‘Rich Dad Poor Dad,’ Robert Kiyosaki, stated he would not be buying Bitcoin through a spot ETF for the same reason he did not own any “gold or silver ETFs or REITs,” according to his X post on April 12.
Furthermore, he voiced his opinion that “ETFs are best for most people and institutions” but, as an entrepreneur, he preferred to “stay as far away from Wall Street’s financial products as possible” because he wanted to keep the responsibility for his potential mistakes in his own hands:
“Packaging my own financial products is best for me because packaging my own securities requires me to be smarter than most ETF buyers. It is what is best for me. If I F’ up, I have no one to blame but me. The more important question is ‘what is best for you.’”
BTC ETFs in eyes of others Meanwhile, American economist Peter Schiff has dismissed spot Bitcoin ETFs as one of the reasons why Bitcoin was likely to crash as more of the maiden crypto asset is entering them, also expressing his view that they are a “godsend for foreign central banks,” as they “have siphoned investor demand away from gold.”
On top of that, Schiff believes that the recent Bitcoin rally, that has followed gold rising to new all-time highs (ATHs) was nothing more but a ploy to “sucker ETF investors into buying the gap up,” advising his followers to “get ready for the dump” by replacing all their Bitcoin with precious metals.
That said, at press time, the price of Bitcoin stood at $70,643, recording a slight increase of 0.06% on the day, and gaining 5.26% across the previous week while accumulating a loss of 3.81% over the past month, according to the most recent charts on April 12.
Ultimately, whether investing in Bitcoin through a spot BTC ETF is a good choice or not depends on the individual or organization interested in it, and while entrepreneurs like Robert Kiyosaki prefer a more direct exposure without any intermediaries, others might find safety in the indirect approach.
Regardless of where one stands in this debate, it is critical to do detailed research and in-depth risk analysis before devoting a significant part of one’s portfolio to any asset, be it a cryptocurrency, an exchange-traded fund, or anything else.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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Ex-FTX CEO Sam Bankman-Fried had a lot of interactions with the Commodity Futures Trading Commission, and two senators are demanding details. (Jesse Hamilton/CoinDesk)The head of the U.S. Commodity Futures Trading Commission (CFTC), Rostin Behnam, had a lot of contact with Sam Bankman-Friend, the disgraced former CEO of FTX, but lawmakers suggest he hasn't been fully forthcoming about those interactions. So, Sens. Elizabeth Warren (D-Mass.) and Chuck Grassley (R-Iowa) are demanding more.
Warren and Grassley sent Behnam a letter calling for "an accounting of all meetings and correspondence between you and Sam Bankman-Fried during your tenure." Over a 14-month period, CFTC officials had met with Bankman-Fried and his team as many as 10 times at the agency, and Behnam told lawmakers in 2022 that he'd also exchanged "a number of messages" with the FTX founder, who was recently sentenced to 25 years in prison for the massive fraud perpetrated there.
For his part, Behnam and his agency have at least one significant reason for communicating so often with the FTX CEO: He was trying to push a part of his company – the LedgerX division that was spun off again after the collapse to return to its original name – into a unique position to directly handle margined derivatives trading for customers without a go-between firm. The failed effort had even been the topic of an in-house roundtable discussion at the CFTC in which SBF starred on a big panel otherwise filled with industry opponents.
In a Senate hearing in 2022 just after the meltdown of FTX, Grassley and another senator asked Behnam for information on his and his staff's meetings and text conversations with Bankman-Fried. Afterwards, Sen. Josh Hawley (R-Mo.) asked for records of correspondence between FTX, the CFTC, other government agencies and the White House.
The new letter from Warren and Grassley, dated April 12, again asks for such correspondence, detailing that they want copies of all written communications, plus minutes and timelines of interactions.
"We just received these letters, so we will work with the office to get them the information they need," said Steven Adamske, a spokesman for the CFTC.
Bipartisan effort demands transparency from CFTC leadership. The inquiry focuses on the extent of regulator-crypto interactions. The disclosure was critical for future regulatory and market reforms. In a bipartisan approach, Senators Elizabeth Warren(D-Mass) and Chuck Grassley (R-Iowa) have written a formal letter to the chair of the U.S. Commodity Futures Trading Commission (CFTC) Rostin Behnam requesting details of communications between the CEO of the crypto exchange FTX, Mr.Sam Bankma-Fried and him. The accusation came as Bankman-Fried was sentenced to 25 years before a multi-billion-dollar fraud last month.
Senators demand extensive details on CFTC and CEO FTX communications The senators hereby seek to inquire into the records peculiar to the engagement of the CFTC members, Sam Bankman-Fried, and any of his employees all through Behnam’s tenure. Members of the parliament have numerous ways of approaching this, such as setting up meetings, phoning if necessary, laying out messages verbally and in writing, and including official as well as private communication channels.
Such inquiry in the letter attempts to explore how deeply CFTC was informed and actively involved with Bankman-Fried prior to his being reckless with Cryptocurrency that resulted in the occurrence of FTX implosion in the month of November 2022.
During bearing testimony to the US Senate Agriculture Committee just after a few times in becoming of FTX’s downfall, Behman revealed last year to the media that he and his team directed meetings with Bankman-Fried and his associates approximately ten times in CFTC offices and exchanged many messages.
Impacts of regulatory oversight and market honesty Nevertheless other investigations from senators, especially from Senator Josh Hawley’s (R-Mo.) quest has shown a need for more transparency as to how these multilateral dialogues are conducted.
The senators’ query demonstrate the ambiguous regulatory theme area surrounding digital currency in the innovative crypto market. Therefore, the swiftness and level of lawmakers to push for a detailed timeline on the CFTC’s relations with FTX and related entities becomes a mode to asses regulatory enforcement lapses and a sharped up framework for protecting American investors.
Disclosing all those details is essential for blocking not only these financial crimes but also other ones if possible. In particular, the response from the CFTC is vital for Congress to outline how such large fraud as the one in question could happen and take the steps to improve investors’ attention on their assets.
The CFTC has been allotted a term of 30 days up till 29th of April 2024 to give a reply to the senators’ AUP. The outcome of this petition may have profound consequences on revealing the levels of market transparency or the regulatory schemes that are introduced to serve as watchdogs over the rapidly growing field of cryptocurrencies.
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Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.
Emman Omwanda
Emmanuel Omwanda’s expertise lies in cryptocurrency markets, spanning both fundamental and technical analysis. He previously worked with various crypto media sites before joining Cryptopolitan, including CoinEdition, The Crypto Basic, CryptoNews Flash, and DroomDroom.He holds a Bachelor of Science (BSc.) in Mathematics and Computer Science from Kenyatta University, Kenya, and is currently in his final year pursuing a Bachelor of Arts in Communication and Media Studies.
U.S. Senators Elizabeth Warren (D-Mass.) and Chuck Grassley (R-Iowa) have issued a formal request for information from Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam.
The demand centers on Behnam’s interactions and communications with Sam Bankman-Fried, the ex-CEO of the cryptocurrency exchange FTX, which was declared bankrupt in November 2022 after a spectacular breakdown. The senators want a comprehensive record of all meetings, telephone conversations, and emails between Behnam and Bankman-Fried throughout the chairman’s term.
The investigation highlights a developing issue among U.S. lawmakers about the supervision and control of cryptocurrency markets.
“Safeguarding the savings and retirements of Americans requires Congress and market regulators like the CFTC to determine how this multi-billion-dollar crime was allowed to happen,” the senators stated in their letter.
This statement emphasizes the essential role of transparency and accountability in the relationships between financial regulators and business executives.
CFTC Chair History of Communication In a Senate Agriculture Committee hearing in 2022, Chair Behnam revealed that he and his team had had about 10 meetings with Bankman-Fried and the other executives of FTX in the 14 months before the exchange’s collapse. These meetings were typical talks with the available market players. However, following the collapse of FTX and the criminal activities of its founder, these interactions have become the subject of thorough investigation.
The senators’ request is specified in a detailed list of the documents and communications to be submitted no later than April 29, 2024. The deadline is designed to allow the legislative body to quickly perceive the balance of the relationship between the CFTC and one of the most influential figures in the cryptocurrency market before the fall of this body.
Regulatory Engagement with FTX The CFTC’s meetings with Bankman-Fried were not limited to periodic regulatory reviews. FTX (via its U.S.-based derivatives exchange) sought to introduce innovative products that had to be approved by the regulator. Many of these proposals brought FTX executives, such as Bankman-Fried, directly to the attention of CFTC officials. The talks were part of FTX’s broader agenda to grow its presence and operations in the regulated U.S. financial markets.
In addition, Behnam and other CFTC staff participated in assessing FTX’s applications for different crypto derivatives products. These applications played a large part in the discussions during the many meetings referred to by Behnam during his deposition.
The senators’ investigation of these interactions is part of a more general concern regarding the adequacy of regulatory review and the threats of conflicts of interest or undue influence in the approval processes of new financial products.
Read Also: Coinbase CEO Teases The Exchange’s Latest AI Integration Moves
U.S. Senators Cynthia Lummis and Kirsten Gillibrand introduced a new stablecoin bill on Wednesday, hoping to create definitions for who can issue dollar-pegged digital assets and how.A stablecoin bill is the type of crypto-specific legislation most likely to become law, but progress on these efforts has stalled out in the past.U.S. Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) are taking another swing at crypto-specific legislation, with a narrowly tailored bill seeking to define how stablecoins – cryptocurrencies that maintain value with some other asset or currency – will operate in the U.S.
The lawmakers unveiled a new stablecoin bill Wednesday in the latest effort to create legislation directly addressing this corner of the crypto market. Under their proposed bill, payment stablecoin issuers would have reserve and operational requirements, including needing to create subsidiaries specifically to issue stablecoins. The bill would also require stablecoin issuers to deal in dollar-backed tokens.
A payment stablecoin, as defined by the bill, would be any dollar-pegged digital asset "that is, or is designed to be, used as a means of payment or settlement." Issuers would be "obligated" to convert to dollars, and the asset itself won't be a security. Issuers would either have to be non-depository trust companies registered with the Federal Reserve Board of Governors or a depository institution "authorized as a national payment stablecoin issuer." Both state and federal regulators would have roles overseeing these entities.
Stablecoin issuers would also be required to ensure their tokens are fully backed by reserve assets and disclose to the public what those assets are. They would also need to tap a non-depository trust as a custodian, and the trust will be required to use a depository institution as a sub-custodian, according to the bill.
The bill also appears to ban algorithmic stablecoins, which are typically undercollateralized tokens designed to maintain their value through algorithmic mechanisms.
In a statement, Gillibrand said a regulatory framework for stablecoins "is absolutely critical to maintaining the U.S. dollar's dominance," and the proposed bill would keep the existing dual banking system intact.
"It protects consumers by mandating one-to-one reserves, prohibiting algorithmic stablecoins, and requiring stablecoin issuers to comply with U.S. anti-money laundering and sanctions rules," she said. "To draft the strongest bill possible, our offices worked closely with the relevant federal and state agencies and I’m confident this legislation can earn the necessary support in the Senate and the House."
Her counterpart, Lummis, said the bill also meets "the growing demand for our ever-evolving financial industry" in a statement, echoing Gillibrand's point on the dual banking system and the dollar's dominance.
The bill created a $10 billion limit for non-depository trust institutions to be able to issue payment stablecoins. Once the issuer exceeds that amount, it must be "a depository institution that has been authorized as a national payment stablecoin issuer," the bill's text said. At present, the largest U.S.-based stablecoin issuer, Circle (with $33 billion in outstanding {{USDC}}), is not a depository trust institution. The next largest, Paxos, does have a limited purpose trust charter through the New York Department of Financial Services, though its market cap falls well below that $10 billion cutoff. A Senate staffer described the $10 billion limit as the approximate cutoff between a small community bank and a larger regional financial institution with systemic risk potential.
Lummis and Gillibrand have jointly introduced a number of bills addressing the digital assets market, including a bill last summer that would create legal definitions for decentralized finance and draw lines for where federal agencies like the Commodity Futures Trading Commission have jurisdiction over crypto. While these bills have not gone anywhere, a Senate staffer told reporters on Tuesday that the lawmakers had sought feedback from federal regulators and the White House.
Stablecoin legislation has long been seen as the type of crypto-specific legislation most likely to become law in the U.S., though progress has been slow. House Financial Services Chair Patrick McHenry (R-N.C.) and Ranking Member Maxine Waters (D-Calif.) have worked on stablecoin legislation for years. A bill advanced out of committee last year, but progress stopped after then-Speaker of the House Kevin McCarthy was ousted.
Last week, Punchbowl News reported that Senate Majority Leader Chuck Schumer (D-N.Y.) met with McHenry and Waters to discuss potentially attaching stablecoin legislation to a bill reauthorizing the Federal Aviation Administration, seen as a must-pass piece of legislation. On Tuesday, Sen. Sherrod Brown, who chairs the Senate Banking Committee, signaled stablecoin legislation could advance if it included certain specific safeguards.
U.S. Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) on Wednesday introduced a new stablecoin bill, aiming to define how these digital tokens will operate within the American financial system.
What Happened: Under the proposed legislation, companies issuing stablecoins for payments would face stricter requirements, Coindesk reported.
The bill specifies that these assets are designed to serve as a medium for payment or settlement and mandates issuers to maintain one-to-one dollar reserves but does not classify the asset as a security.
“The regulatory framework for stablecoins is absolutely critical to maintaining the U.S. dollar’s dominance,” stated Senator Gillibrand.
She highlighted that the legislation aims to preserve the traditional dual banking system while integrating necessary consumer protections, such as banning algorithmically managed stablecoins, which are often undercollateralized and maintain value through computational strategies.
Senator Lummis echoed these sentiments, emphasizing that the bill addresses “the growing demand for our ever-evolving financial industry” and upholds the U.S. dollar's preeminence in the global financial system.
Also Read: EXCLUSIVE: How The Bitcoin Halving Could Transform The Market
Both senators have previously collaborated on various digital asset initiatives, including legislation that delineates legal boundaries for decentralized finance and clarifies the extent of federal regulatory oversight.
The legislation also sets a significant operational threshold for stablecoin issuers; a cap of $10 billion has been placed on non-depository trusts’ stablecoin issuance.
Beyond this limit, entities must qualify as depository institutions recognized as national payment stablecoin issuers.
This provision aims to differentiate between smaller enterprises and large-scale operators that might pose systemic risks.
For context, Circle, the largest U.S. stablecoin issuer with $33 billion in USDC (CRYPTO: USDC) in circulation, exceeds this threshold and would require appropriate institutional status under the new law.
Discussions about integrating stablecoin regulation with other essential legislative measures have also surfaced.
Reports from Punchbowl News indicated that Senate Majority Leader Chuck Schumer (D-N.Y.) considered merging stablecoin regulations with the reauthorization of the Federal Aviation Administration, a strategy to ensure passage.
Moreover, Senator Sherrod Brown (D-Ohio), chair of the Senate Banking Committee, suggested he would support advancing stablecoin legislation if it included robust safeguards.
What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Peter Schiff Debates Natalie Brunell On Bitcoin: ‘If Natalie Were Smart, She Would Sell All’
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Crypto-Skeptic Senator Sherrod Brown Open To Stablecoin Legislation, Bloomberg Reports
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Senator Sherrod Brown (D-H), a noted crypto-skeptic, expressed openness to stablecoin legislation amidst news of a bipartisan bill proposed by Representatives Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY), a Tuesday report from Bloomberg revealed.
When asked by the news outlet if he would advance stablecoin legislation tethered to a bill focused on reducing compensation for failed lenders’ executives and authorizing banks to conduct with cannabis businesses, Brown reportedly answered “That’s the goal.”
Senator Sherrod Brown Willing To Advance Stablecoin LegislationFor context, U.S. lawmakers often attempt to bundle issues into a bill in hopes of generating support for legislation that may otherwise fail.Brown cautioned that any compromise on stablecoins “would have to address his concerns to support it,” however.
Representatives Kirsten Gillibrand and Cynthia Lummis Introduce New BillShortly after news broke of Brown’s willingness to support stablecoin legislation, Representatives Lummis and Gillibrand introduced the aptly named “Lummis-Gillibrand Payment Stablecoin Act of 2024.”According to a statement from Gillibrand, the bipartisan bill would create federal and state regulatory regimes for stablecoin issuers that preserve the dual banking system, ensure stablecoin issuers maintain one-to-one reserves while prohibiting unbacked algorithmic stablecoins, and prevent illicit use of stablecoins by issuers and users.
I'm proud to join @SenLummis to introduce the Payment Stablecoin Act.
Passing a regulatory framework for stablecoins is critical to protecting consumers, promoting responsible innovation, and cracking down on money laundering and illicit finance. https://t.co/UP9pk0uQkt pic.twitter.com/lIqA3rwQXN
— Sen. Kirsten Gillibrand (@gillibrandny) April 17, 2024
The senators introduced the “Lummis-Gillibrand Responsible Financial Innovation Act” in 2022 and reintroduced it last year in hopes of creating stricter digital asset regulations.
“Passing a regulatory framework for stablecoins is absolutely critical to maintaining the U.S. dollar’s dominance, promoting responsible innovation, protecting consumers and cracking down on money laundering and illicit finance,” said Senator Gillibrand. “The bipartisan Lummis-Gillibrand Payment Stablecoin Act preserves the dual banking system and gives both federal and state agencies roles in chartering and enforcement.”
Elizabeth Warren Pushes Back Against Stablecoin LegislationPassing stablecoin legislation has been a hot topic on Capitol Hill in recent months. House Financial Services Committee Chairman Patrick McHenry (R-NC) and Congresswoman Maxine Waters (D-CA) reportedly pitched an unreleased proposal to Senate Majority Leader Senator Chuck Schumer (D-NY) last week tying stablecoin reform to the upcoming funding reauthorization of the Federal Aviation Administration (FAA).Senator Elizabeth Warren (D-MA) has resisted her colleagues’ efforts, however, claiming that advancing such legislation without effective anti-money laundering laws could expose a number of security risks.
For years, Warren has been trying to pass the “Digital Assets Anti-Money Laundering Act” (DAAMLA), which would put such stringent anti-money laundering laws in the crypto sector.
“We need a regulatory framework that will put the rules for Anti-Money Laundering in place so that we do not have more opportunities for Iran and terrorists and drug lords and human traffickers to make more money,” Warren said during a recent hearing.
With Brown seemingly on board with approving a stablecoin bill, it may only be a matter of time before new stablecoin legislation is passed.
The prominent investor Robert Kiyosaki is widely known for three things: authoring the best-selling personal finance book ‘Rich Dad Poor Dad,’ making exceptionally provocative posts on X, and being very bullish on gold, silver, and Bitcoin (BTC) and mightily bearish on the U.S. dollar.
Looking at the recent performance of the three, with silver running strong, gold now expected to hit $3,000 within months, and Bitcoin reaching a new all-time high (ATH) in March with even bigger moves expected with the halving, it seems apparent that Kiyosaki’s investment advice is sound.
With this in mind, Finbold decided to try and estimate just how much an investor would have made if they invested $1,000 in each of the author’s favored assets when he first recommended all three near the same time..
How much would an investment in Kiyosaki’s favored assets made when he turned bullish be worth now? Tracking down when Kiyosaki first turned simultaneously bullish on the two commodities and the world’s premier cryptocurrency proved a troublesome task, but an extensive search yielded three strong candidates.
Kiyosaki has been bullish on gold and silver for decades, citing his sister’s investments as a positive example already in 1997 and, 20 years later, on August 14, 2017, he made a cautious recommendation for Bitcoin on Facebook (NASDAQ: META) – though he did warn it is extremely risky and expressed doubt in its long-term prospects.
BTC price chart and the timing of the three recommendations. Source: Finbold and TradingView That day, the price of Bitcoin stood at $4,300, of gold at $1,281, and silver at $17. This means that a $1,000 made in each of the three assets made at the time would now, on April 17, be worth $14,593 – with BTC press time price at $62,752.40 – $2119.68 – with gold’s press time price at $2391.09 – and $1684 – with silver’s price standing at $28.63.
The next milestone came on December 31, 2019, with the release of the book ‘Fake,’ in which Kiyosaki describes and, arguably endorses, gold and silver as ‘God’s money,’ and Bitcoin as ‘people’s money.’
Gold price chart and the timing of the three recommendations. Source: Finbold and TradingView That day, the price of Bitcoin stood at $7,252, of gold at $1,517, and silver at $17.82. This means that a $1,000 made in each of the three assets made at the time would now, on April 17, be worth $8,653, $1,576, and $1,606.6, respectively.
Kiyosaki’s stance became evidently solidified by the release of his interview with Anthony Pompliano, published on ‘The Rich Dad Channel’ on YouTube on July 8, 2020. Coincidentally, in the very same episode, Pompliano predicted a BTC climb to $100,000 – a prediction that is yet to come true.
Silver price chart and the timing of the three recommendations. Source: Finbold and TradingView That day, the price of Bitcoin stood at $9,439, of gold at $1,808, and silver at $18.7. This means that a $1,000 made in each of the three assets made at the time would now, on April 17, be worth $6648, $1,322.4, and $1,531, respectively.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced fresh stablecoin legislation Wednesday, renewing lawmakers’ years-long attempt at enacting a comprehensive framework for the class of crypto assets in the United States.
The 117-page bill includes a raft of definitions pertaining to the sector, outlining rules on the state and federal levels for firms to issue so-called payment stablecoins. The bill also requires that firms conduct any stablecoin activities through subsidiaries. Stablecoins are crypto assets that are pegged to (and backed by) fiat currencies, and maintain a stable price point.
The new requirement differs from how some companies have handled stablecoins in the past. For example, Binance, which is not a bank, once offered its Binance USD (BUSD) stablecoin through Paxos Trust, which is not a subsidiary of the crypto exchange. The companies’ support of BUSD, however, drew to a close after Paxos was warned of a potential enforcement action by the SEC last year.
Different regulations would apply to companies depending on the outstanding value of stablecoins issued. Under the bill, dubbed the Lummis-Gillibrand Payment Stablecoin Act, a $10 billion cap is placed on state regulators’ ability to authorize and supervise non-depository trust companies involved in the stablecoin space.
🚨@gillibrandny and I are introducing the most comprehensive stablecoin bill to date.
Crypto assets are revolutionizing the world and as the undisputed leader in financial innovation, the U.S. must embrace crypto assets, but it cannot be done without clear rules for stablecoins. pic.twitter.com/vwRUEBUdsl
— Senator Cynthia Lummis (@SenLummis) April 17, 2024
“The legislation maintains the dual banking system that is critical to preserving the parity enjoyed by the state and federal financial institutions,” Lummis said on Twitter (aka X) on Wednesday.
Last week, Senate Majority Leader Chuck Schumer (D-NY) met with key legislators from the House Financial Service Committee to discuss stablecoin legislation, per Punchbowl News. During the meeting, lawmakers reportedly discussed folding bipartisan legislation into a bill reauthorizing the Federal Aviation Administration (FAA).
“I think there’s momentum,” Gillibrand said in an interview on CNBC’s "Squawk Box" Wednesday. “As part of the FAA reauthorization, it can be done quite quickly.”
Often referred to as the "Bitcoin Senator," Lummis' advocacy for crypto on Capitol Hill dates back to her election win in 2020. However, Lummis says she bought her first Bitcoin back in 2013, believing in its potential to address issues in today's financial system.
Under the new bill, it would be unlawful for stablecoin issuers in the U.S. to issue algorithmic stablecoins. Instead of using assets to back a stablecoin’s value, algorithmic coins keep their price pegged to the dollar (or other asset) with trading incentives.
Additionally, the bill requires that stablecoin issuers maintain one-to-one reserves for stablecoins. Often, fiat-backed stablecoins are pegged to the dollar through a mix of liquid assets like U.S. Treasuries and cash.
Algorithmic stablecoins caught attention on Capitol Hill following the collapse of TerraUSD in 2022, which shredded more than $40 billion worth of investors’ wealth. In February, U.S. Treasury Secretary Janet Yellen said it should still be a priority for Congress to pass legislation regulating the stablecoin market.
The senators’ bill introduced Wednesday follows the introduction of other crypto-related bills, such as the Lummis-Gillibrand Responsible Financial Innovation Act in 2022.
Outlining boundaries between the regulatory authority of the Securities and Exchange Commission and Commodity Futures Trading Commission, the bill was reintroduced in 2023.
So far, efforts to regulate crypto on Capitol Hill have died on the legislative grapevine. But Lummis is hopeful that the senators’ efforts could bear fruit before election season becomes too strong a force.
“We're going to keep pushing for weeks, rather than months,” Lummis said on "Squawk Box" Wednesday, adding that Congress is quickly approaching a period where “politics takes over policy.”
Edited by Stacy Elliott and Andrew Hayward
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Home ›Earnings D.R. Horton, Inc. has showcased its industry leadership with a robust performance in the Q2, reporting a significant 24% increase in net income.
Tim Fries Tim Fries is the cofounder of
Apr 18, 2024 2 min read
Image courtesy of 123rf.com Editorial disclosureRead more All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.com. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
D.R. Horton, Inc. (NYSE: DHI), has demonstrated its industry leadership with a robust performance in the fiscal 2024 second quarter. The company reported a significant 24% increase in net income, reaching $1.2 billion, or $3.52 per diluted share.
This performance marks a notable rise from the $942.2 million, or $2.73 per diluted share, recorded in the same quarter of the previous fiscal year.
Consolidated revenues increased by a healthy 14% to $9.1 billion compared to $8.0 billion in the fiscal 2023 second quarter. This growth is attributed to a 15% increase in homes closed, totaling 22,548 homes, and a 14% increase in value to $8.5 billion. The company’s strategic operations and market positioning have yielded a commendable pre-tax profit margin of 16.8%, showcasing its operational efficiency and market strength.
D.R. Horton Beats Expectations in Q2, Reports $3.52 EPS and $9.1 B in Revenue Against expectations, D.R. Horton’s fiscal 2024 second-quarter performance has outpaced projections. Analysts had anticipated earnings per share (EPS) of $3.07 and revenue of $8.15 billion for the quarter.
The actual EPS of $3.52 and revenue of $9.1 billion surpassed these expectations and highlighted the company’s ability to exceed in a challenging market environment. This outperformance is a testament to D.R. Horton’s robust business model, effective cost management strategies, and the continued demand for affordable housing.
The company’s successful execution of its business strategy is evident in its increased net sales orders, which rose 14% to 26,456 homes and 17% in value to $10.1 billion, further solidifying its market leadership position.
D.R. Horton Expects Consolidated Revenues to be Approximately $36.7 B to $37.7 B D.R. Horton has provided optimistic guidance for fiscal 2024, reflecting confidence in its business strategy and market opportunities. The company expects consolidated revenues to be approximately $36.7 billion to $37.7 billion, with homebuilding operations projected to close between 89,000 to 91,000 homes. Additionally, D.R. Horton anticipates share repurchases of approximately $1.6 billion and an income tax rate of around 23.5% to 24.0%.
This guidance underscores the company’s positive outlook and ability to navigate the complexities of the housing market effectively. With a strong liquidity position and a disciplined approach to capital investment, D.R. Horton is well-positioned to continue delivering value to its shareholders and capitalizing on the favorable demographics supporting housing demand.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
Tim Fries Author · Tokenist
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
The U.S. company Circle would have an easier time than Tether choosing to comply with the stablecoin regulations proposed by U.S. Sens. Cynthia Lummis and Kirsten Gillibrand.Lummis argued U.S. customers will prefer U.S.-regulated stablecoin issuers.Circle Internet Financial would have a distinct advantage over global stablecoin leader Tether under U.S. regulations along the lines being suggested by new legislation, according to one of the latest bill's authors, Sen. Cynthia Lummis (R-Wyo.).
"Let's say you're a U. S. consumer," and you're not an expert in the details about specific stablecoin issuers, Lummis told CoinDesk TV in an interview. She argued such a person is likely to favor companies overseen by U.S. regulations.
"If that were me, I would choose Circle over Tether," said Lummis, who introduced the latest stablecoin legislative proposal this week with her usual crypto partner Sen. Kirsten Gillibrand (D-N.Y.).
Stablecoins are designed to be tokens with steady value – typically pegged to the U.S. dollar – and are vital for use in other crypto trading or contracts. The Lummis-Gillibrand proposal is positioned as a work-in-progress bill meant to start conversations and to be modified for melding with whatever version emerges from the House, she said. But as it stands, it echoes other previous legislative efforts in demanding a bank-like regulatory regime for stablecoin issuers.
"This is very much oriented towards a U.S.-regulated company, and so Tether, if it chooses to remain offshore … that's a business choice for them," Lummis said, and the company and token, USDT$0.9988, would presumably be picked up by other regulators and continue operating beyond the U.S. system. "We're very focused on companies that are located and embedded in the U. S. economy."
Still, she said she'd expect existing stablecoin leaders such as Circle would have major regulatory hurdles to clear, such as getting licensed with a federal regulator. (Circle, as it exists today, would not be allowed to issue its {{USDC}} under the proposed bill, which demands that businesses issuing more than $10 billion in tokens be regulated depository institutions – either on the state or federal level.)
Circle hasn't responded to requests seeking comment on the bill.
"We're glad we went ahead and put it out just to get some good feedback," Lummis said, describing it as a "very firm, solid regulatory framework" that's meant to satisfy lawmakers who are worried about the crypto disasters they've been witnessing since 2022. "We're happy to adjust it according to changes the House might want to make, changes the White House might want to make, changes the industry might want to make."
While cryptocurrency legislation remains a longshot for this session of Congress, when viewing its current political turmoil, party divisions, workload and proximity to elections, several prominent lawmakers continue to issue optimistic statements. Recently, Senate Banking Committee Chairman Sherrod Brown (D-Ohio) reportedly said he's willing to talk about stablecoins (though alongside a number of his other banking priorities), and Senate Majority Leader Chuck Schumer (D-N.Y.) also said he's open to it.
The House Financial Services Committee's heads recently met with Schumer about moving crypto legislation, though it's unclear how far those talks have advanced. Lummis said Thursday that she's still waiting to see what emerges from the committee's chiefs, Reps. Patrick McHenry (R-N.C.) and Maxine Waters (D-Calif.). Spokespeople for both lawmakers did not return requests for comment about the Lummis-Gillibrand bill.
Amid escalating geopolitical tensions in multiple regions of the world, the famous investor and author of the best-selling personal finance book ‘Rich Dad Poor Dad,’ Robert Kiyosaki, has opined they could lead to another World War and that Bitcoin (BTC) would do well in such circumstances.
As it happens, Kiyosaki discussed the future of banks, Bitcoin, gold, real estate, and the state of the world as he sat down with Gerald Celente, the editor and producer of the Trends Journal, for an episode of Kiyosaki’s The Rich Dad Channel podcast that premiered on April 17.
Bitcoin through the roof Specifically, as the popular finance educator pointed out, the global uncertainties are heightening toward the edge of a massive war, and “our banks are in trouble,” while assets like precious metals and cryptocurrencies are rising in demand and price, highlighting that:
“We’re talking about the ‘golden year’ for gold, and the reason for it is the banks are going bust – everybody knows that – Bitcoin is going through the roof, but the part that concerns me the most is World War 3, we’re on the verge of it right now.”
Furthermore, Kiyosaki asked Celente for his views, and the editor explained that there were now 300 regional banks in the United States that the experts have downgraded to negative, as opposed to five last year, and the commercial property debt accrued during Covid’s switch to working from home has led to:
“The banks face a $2 trillion wall of commercial property debt – $2 trillion coming due that they’re not going to be able to pay. The banks are going to go bust. It’s going to be a banking crisis the likes of which we have never seen in the world.”
BTC price prediction As a reminder, Kiyosaki has long supported the flagship decentralized finance (DeFi) asset, which he believes could one day hit the price of $2 million, agreeing in his view with Cathie Wood, the founder and CEO of ARK Invest, which manages several exchange-traded funds (ETFs).
Meanwhile, the maiden crypto asset was at press time trading at the price of $64,700, recording an increase of 5.27% on the day, reversing the losses of 8.31% from across the week, and accumulating a gain of 2.49% on its monthly chart, as per the most recent information retrieved on April 19.
Bitcoin price 24-hour chart. Source: Finbold In conclusion, Robert Kiyosaki might be correct in his predictions, but it is important not to follow anyone’s advice blindly and do one’s own due diligence, thoroughly investigating any asset before investing a significant amount of money in it because trends can shift on a whim, regardless of the industry.
Watch the entire video below:
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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Two US lawmakers unveiled on Wednesday proposed legislation that will create a regulatory framework for payment stablecoins.
In a statement, senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) say the bipartisan Lummis-Gillibrand Payment Stablecoin Act will protect consumers, enable innovation and promote the dominance of the U.S. dollar while preserving the dual banking system.
[adinserter block="1"]
“In order to meet the growing demand for our ever-evolving financial industry, we need to craft legislation that strikes the careful balance of establishing a clear and workable framework for stablecoins while protecting consumers.”
The senators say that the bill will protect consumers by requiring stablecoin issuers to maintain 1:1 reserves and prohibit the use of unbacked, algorithmic stablecoins — or those whose value does not rely on a reserve of asset, but depends on code-based mechanisms.
If the bill becomes a law, stablecoin issuers will be required to hold one-to-one asset reserves to ensure that the stablecoins they issue are fully backed by cash and cash equivalents. They will also only issue dollar-backed stablecoins.
The statement says the proposed law will likewise prevent illicit use of stablecoins by requiring issuers to comply with U.S. anti-money laundering and sanctions rules, support the US dollar as a medium of digital exchange and counter foreign ambitions to create alternative settlement systems.
Says Gillibrand,
“Passing a regulatory framework for stablecoins is absolutely critical to maintaining the U.S. dollar’s dominance, promoting responsible innovation, protecting consumers and cracking down on money laundering and illicit finance.”
US Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) have introduced the Lummis-Gillibrand Payment Stablecoin Act, proposing comprehensive regulation for stablecoins in the US.
The bill mandates operational and reserve requirements for payment stablecoin issuers, aiming to strengthen the US dollar’s dominance. However, it has faced criticism, particularly regarding its ban on algorithmic stablecoins.
🚨@gillibrandny and I are introducing the most comprehensive stablecoin bill to date.
Crypto assets are revolutionizing the world and as the undisputed leader in financial innovation, the U.S. must embrace crypto assets, but it cannot be done without clear rules for stablecoins. pic.twitter.com/vwRUEBUdsl
— Senator Cynthia Lummis (@SenLummis) April 17, 2024 Overview of the bill The Lummis-Gillibrand Payment Stablecoin Act defines payment stablecoins as dollar-pegged digital assets used for payments or settlements. Key provisions of the bill include operational requirements for issuers to operate through subsidiaries, deal exclusively in dollar-backed tokens, and ensure full backing by reserve assets. Additionally, stablecoin issuers would be required to disclose their reserve assets to the public and utilize non-depository trusts as custodians.
Ban on algorithmic stablecoins One of the most controversial aspects of the bill is its ban on algorithmic stablecoins, which rely on algorithms rather than full collateralization to maintain their value.
Critics, including Coin Center, argue that this ban stifles innovation and raises constitutional concerns. Coin Center suggests a more nuanced approach, such as a moratorium on new algorithmic stablecoins, to allow for ongoing innovation and examination by regulatory bodies.
Senators said that this regulatory framework is crucial for maintaining the U.S. dollar’s dominance and ensuring consumer protection. The bill also introduces a $10 billion limit for non-depository trust institutions to issue payment stablecoins, beyond which issuers must qualify as depository institutions authorized at a national level.
This move represents a concerted effort by Lummis and Gillibrand to shape the digital assets market, echoing previous unsuccessful attempts to define legal parameters for decentralized finance and establish jurisdiction for federal agencies over cryptocurrency.
Coin Center’s concerns on free speech and innovation Coin Center has voiced strong opposition to the bill, particularly criticizing its complete ban on algorithmic payment stablecoins. They argue that such a ban is not only detrimental to innovation but also unconstitutional.
According to Coin Center, the ban on algorithmic stablecoins equates to a ban on publishing code, which they claim infringes on the First Amendment rights of developers.
They advocate for a more nuanced approach, such as the one taken in the“Clarity for Payment Stablecoins Act,” which proposed a two-year moratorium on new algorithmic stablecoins instead of an outright ban.
This approach, they suggest, is less restrictive and allows for ongoing innovation and examination by regulatory bodies.
The constitutional debate The debate over the regulation of algorithmic stablecoins extends to constitutional rights, with critics arguing that the prohibition could be seen as a prior restraint on free speech. This aspect highlights the complexity of regulating emerging technologies without infringing on fundamental liberties.
Coin Center argues that any regulation must be narrowly tailored to serve a compelling government interest, a criterion they believe the current bill fails to meet.
The Lummis-Gillibrand Payment Stablecoin Act represents a significant step in the regulation of stablecoins in the United States. However, its ban on algorithmic stablecoins has sparked controversy, with critics arguing that it stifles innovation and raises constitutional concerns.
The debate underscores the challenges of regulating emerging technologies while balancing innovation and consumer protection.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk
A 71-year-old digital artist in India fell victim to scammers pretending to be an NFT art dealer.
According to a local report, Shivaprasad R (name changed), a practicing chartered accountant (CA), lost INR 1.58 lakhs (approximately $1895) in fees to the scammers who promised to buy out his art.
Shivaprasad is a professional artist whose work has been featured in several local exhibitions and posted on Instagram and Facebook. In October 2023, the scammers, claiming to be an “NFT art dealer,” introduced the artist to a platform dubbed nfttradeplace.com.
The scammer told the victim that they would like to purchase his paintings for 42 ETH, or INR 1.09 crore, a significant sum in India. The negotiations were all held virtually, via email and Facebook.
The digital artist took up the offer and listed three of his artworks for 10 ETH and another one for 12 ETH. On February 1, 2024, the victim was asked to pay 0.115 ETH to the scammer’s platform as a “gas fee.”
“The victim made the payment from his crypto wallet, which he set up at the scammer’s behest,” a cybercrime investigator was quoted saying.
Following the completion of his first sale, the artist requested a withdrawal of 6 ETH from his earnings. However, despite waiting for days, no transaction was initiated. Upon checking again, Shivaprasad was asked to pay a “delay fee” for supposedly holding up the withdrawal of his cryptocurrency.
“This delay fee was never discussed nor was it exhibited on the website,” the victim said in a statement.
He added that since he wasn’t in possession of any ETH, he had requested the scammers to accept the delay fees in fiat currency. The scammers agreed to this request, and the victim went on to make four payments to the accounts of Mohammed Ekramul Haque and Mohammad Farooq. It has not been confirmed whether these people are the masterminds behind this scam.
Shivaprasad made the last payment to the scammers on March 15. He noted that the platform “kept asking [him] for further payments” to be able to withdraw his 6 ETH.
This was when the victim realized that his NFT clients had duped him. On April 17, the victim contacted the cyber police and filed charges under 66C (punishment for identity theft) and 66D (punishment for cheating by personation by using computer resources) of the Information Technology (IT) Act and 420 (cheating and dishonestly inducing delivery of property) of the Indian Penal Code (IPC).
“It is highly difficult to trace cryptocurrency trails. As of now, bank details and domain details of the email address used by the scammers have been sought,” an officer familiar with the matter said.
Cryptocurrency scams have seen a significant uptick in India, despite crackdowns from local authorities. Last week, the nation’s Enforcement Directorate (ED) launched an investigation into a $800 million Ponzi scheme involving a Bollywood celebrity.
Prior to that, a job recruitment scam was flagged in the nation, which saw scammers draining their victims’ crypto wallets using spyware disguised as applications touted as essential for the onboarding process.
Senators Kirsten Gillibrand (left) and Cynthia Lummis (Suzanne Cordiero/Shutterstock/CoinDesk)Last week, U.S. Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) introduced a joint bill addressing how stablecoins could be regulated in the country. It's the latest effort to try and get something done in the U.S. legislative front – but is it enough?
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Stablecoin qsThe narrativeLast week, U.S. Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) introduced their latest joint bill, this time taking on stablecoins, the $160 billion section of the overall crypto market that's received a fair amount of attention recently – and is seen as the area where crypto legislation is most likely to actually happen. Which still isn't all that likely.
Why it mattersThe new Lummis-Gillibrand bill is a lengthy proposal detailing how stablecoins issued by U.S. companies would be overseen, how they could maintain their peg (algos are out) and how consumers might be protected.
Breaking it downThe new Lummis-Gillibrand bill creates a framework for state and federal oversight of stablecoin issuers, details a Federal Deposit Insurance Corporation (FDIC) process for possible collapses and bans algorithmic stablecoins outright.
Industry participants voiced a few immediate concerns about the new Lummis-Gillibrand bill, pointing to a lack of provisions accounting for crypto-backed tokens like DAI and the blanket ban on algorithmic stablecoins.
The bill has a comprehensive list of rules for stablecoins issued by U.S. companies but is far more limited in addressing foreign company-issued tokens, like Tether USDT$0.9988. A press release announcing the bill said "malign actors will no longer have the option to use unregulated foreign stablecoins."
At first blush, there doesn't appear to be a specific mechanism that would actually block them from doing so.
My colleague Jenn Sanasie asked Sen. Lummis on CoinDesk TV whether there was a specific mechanism that would prevent issuers based outside the U.S. from tapping U.S. customers.
"This is very much oriented towards a U.S.-regulated company, and so Tether, if it chooses to remain offshore [and] is happier with a different regulator, that's a business choice for them," she said. "But if they want the U.S. Good housekeeping stamp of approval on their product, and we hope they will, then they'll come into compliance in the U.S."
Tether issues the world's largest stablecoin, the eponymous tether USDT$0.9988, with $110 billion worth of tokens in circulation according to CoinGecko. It's also the most liquid, with CoinGecko reporting some $38 billion in 24-hour volume (the next largest stablecoin by market cap is Circle's USDC, with $34 billion worth of tokens circulating and $6 billion in 24-hour volume). (I reached out to Tether spokespeople for comment, but haven't heard back.)
Circle, as it stands today, wouldn't be able to continue operating – there's a $10 billion limit, above which stablecoin issuers would need to be state or federally chartered depository institutions.
Lummis said she wanted the company to look at the bill and determine how its compliance practices might need to change to fit.
"They probably have to get a federal charter, to be honest," she said.
It's also unclear to me how exactly this bill might treat stablecoins like DAI, which is issued by a decentralized entity but isn't an algorithmic stablecoin.
Time will tell where and how this bill will proceed.
The other major effort that seems to be underway comes from the House Financial Services Committee, with reports saying Chair Patrick McHenry (R-N.C.) and Ranking Member Maxine Waters (D-Calif.) met with Senate Majority Leader Chuck Schumer (D-N.Y.) to discuss attaching a stablecoin bill to some other piece of legislation. It's unclear just what the current version of the House bill looks like (neither McHenry's nor Waters' spokespeople responded to requests for comment).
And perhaps most intriguingly, Senate Banking Committee Chairman Sherrod Brown (D-Ohio) said he could support a bill if it addressed consumer protection questions and had appropriate guardrails (spokespeople for Brown also didn't return a request for comment).
But of course, of course, of course, the clock is ticking. Lawmakers are already full swing in campaign mode. As we get to the summer, the chances of elected officials taking time off from the campaign trail for something as esoteric as stablecoins will be low. Any progress made will grind to a halt (and that's assuming we don't suddenly have another House speakership vacancy, though an effort to oust Mike Johnson seems to be wilting).
The more likely scenario is we may see passage during the lame-duck session, between the election and before the next Congress is sworn in. Even there, any bill would be attached to some must-pass piece of legislation, in all likelihood. This might be the next National Defense Authorization Act or some kind of budget bill.
How the stablecoin legislation efforts might evolve between now and then is anyone's guess, though with McHenry on his way out – he's not running for reelection – and Brown and Schumer apparently on board, there is still a better-than-negligible chance we will see a bill become a law by January.
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The U.S. Department of Justice and Changpeng Zhao's attorneys are expected to file their respective sentencing memos. His sentencing hearing is on April 30.Friday
The U.S. Department of Justice has a deadline to file its opposition to Roman Storm's motion to dismiss the case against him.Elsewhere:(CNN) North Korean citizens may have produced work for U.S. animation studios, the cable news channel reported after digging through documents found on a North Korean server.(New York Magazine) John Herrman walks through why the internet is a lot less fun now, looking at the role of ads and search engine optimization as one lens.(New York Times) David McCormick, the Republican challenger to Senator Bob Casey (who wrote an oped on crypto last month), may have exaggerated his origin story during his campaign (and his last one). Interestingly, he tried to refute this article via a thread on X (formerly Twitter) prior to its publication.(Vox) A few weeks ago in this newsletter I said I wasn't sure whether there were more aviation incidents happening (particularly to United, which keeps seeing weird things happen) or if people were paying more attention. Kelsey Piper reports that in reality, the number of aviation incidents in the U.S. appears to be about on par with previous years.If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at [email protected] or find me on Twitter @nikhileshde.
You can also join the group conversation on Telegram.
See ya’ll next week!
Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.
R Games is marking a significant milestone in the gaming world with the launch of its $RGAME token, scheduled for 10 AM UTC on April 8th, 2024.
This major step for R Games will launch on platforms like DAOMaker, Poolz Finance, Finceptor, and Paragen, followed by listings on top exchanges such as Gate.io, MEXC Global, PancakeSwap, Raydium, and BingX.
A strong community from Fabwelt Studios and WEMIX Play backs this launch.
$RGAME is Poised to Transform the Blockchain Industry with Artificial Intelligence, Precise Engineering and Racing.
Starting with an initial market cap of $296,250 & valuation of 7.5M, with support from leading advisors and investors in the blockchain and gaming industries such as Ferrum Network, BMW Capital, Lavender Capital, Qu Ventures, Oddiyana Ventures, IBC Group, Mario Nawfal, Sky Wee, Yuen Wong, Robby Joe, and Rajan Raj.
Key features of R Games include
Interoperable NFTs User-generated content capabilities AI-integrated designs This unique combination sets R Games apart as a frontrunner in the Web3 AI and Gaming sector, catering to seasoned gamers and newcomers alike.
As the countdown to TGE and IDO commences, R Games invites gamers, investors, and enthusiasts alike to join its journey towards revolutionizing the gaming industry and unlocking new possibilities in the Web3 world.
Future of R Games
Looking towards the future, R Games has ambitious plans in store.
Development efforts are focused on implementing upgrades such as an advanced Upgrade System, Virtual Garage, and AI integration.
These additions are designed to give users a variety of opportunities to earn, with models including
Develop-to-Earn Watch-to-Earn Play-to-Earn Players can fine-tune and electronically upgrade all vehicle models within the game within the workshop, offering a customizable experience.
The integration of AI technology allows users to design their car characters, even without technical expertise effortlessly.
The roadmap also includes diverse modes like Formula One, Street Racing, Story Mode, and Off-Road Racing to cater to a broad audience.
About RGames
R Games is a highly tailored platform offering a diverse range of gaming modes, aimed at creating the largest blockchain-based racing ecosystem.
R Games team comes from a successful studio venture Gyros Studios LCC Formerly Known as Fabwelt Studios LLC built numerous successful Blockchain Games.
Loet de Hooge, Abhishek Pegada, and Rubina Naaz are the visionary founders of R Games, bringing together their diverse expertise and passion for gaming and blockchain technology.
Loet de Hooge is known for his technical prowess and innovation,
Abhishek Pegada contributes his strategic leadership and business acumen, while Rubina Naaz brings the team a creative and user-centric approach.
Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.
R Games is marking a significant milestone in the gaming world with the launch of its $RGAME token, scheduled for 10 AM UTC on April 8th, 2024.
This major step for R Games will launch on platforms like DAOMaker, Poolz Finance, Finceptor, and Paragen, followed by listings on top exchanges such as Gate.io, MEXC Global, PancakeSwap, Raydium, and BingX.
A strong community from Fabwelt Studios and WEMIX Play backs this launch.
$RGAME is Poised to Transform the Blockchain Industry with Artificial Intelligence, Precise Engineering and Racing.
Starting with an initial market cap of $296,250 & valuation of 7.5M, with support from leading advisors and investors in the blockchain and gaming industries such as Ferrum Network, BMW Capital, Lavender Capital, Qu Ventures, Oddiyana Ventures, IBC Group, Mario Nawfal, Sky Wee, Yuen Wong, Robby Joe, and Rajan Raj.
Key features of R Games include
Interoperable NFTs User-generated content capabilities AI-integrated designs This unique combination sets R Games apart as a frontrunner in the Web3 AI and Gaming sector, catering to seasoned gamers and newcomers alike.
As the countdown to TGE and IDO commences, R Games invites gamers, investors, and enthusiasts alike to join its journey towards revolutionizing the gaming industry and unlocking new possibilities in the Web3 world.
Future of R Games
Looking towards the future, R Games has ambitious plans in store.
Development efforts are focused on implementing upgrades such as an advanced Upgrade System, Virtual Garage, and AI integration.
These additions are designed to give users a variety of opportunities to earn, with models including
Develop-to-Earn Watch-to-Earn Play-to-Earn Players can fine-tune and electronically upgrade all vehicle models within the game within the workshop, offering a customizable experience.
The integration of AI technology allows users to design their car characters, even without technical expertise effortlessly.
The roadmap also includes diverse modes like Formula One, Street Racing, Story Mode, and Off-Road Racing to cater to a broad audience.
About RGames
R Games is a highly tailored platform offering a diverse range of gaming modes, aimed at creating the largest blockchain-based racing ecosystem.
R Games team comes from a successful studio venture Gyros Studios LCC Formerly Known as Fabwelt Studios LLC built numerous successful Blockchain Games.
Loet de Hooge, Abhishek Pegada, and Rubina Naaz are the visionary founders of R Games, bringing together their diverse expertise and passion for gaming and blockchain technology.
Loet de Hooge is known for his technical prowess and innovation,
Abhishek Pegada contributes his strategic leadership and business acumen, while Rubina Naaz brings the team a creative and user-centric approach.
