John Deaton, a prominent lawyer and advocate for XRP, warns that if the GENIUS Act — which has already passed the U.S. Senate — fails to secure final approval in the House of Representatives and the President's signature, it could mean regulatory collapse for the crypto sector.

According to Deaton, this bill is the last realistic opportunity for comprehensive crypto legislation before the upcoming elections. Should it stall now, other important initiatives — such as BitBonds, crypto tax reform, and consumer protection during bankruptcies — will likely remain blocked indefinitely.

Stablecoins: No Interest, No Competition

Deaton highlights a critical issue in the bill’s current form: stablecoin holders are prohibited from earning interest. This, he argues, prevents them from competing with traditional savings accounts — weakening innovation and possibly undermining financial system stability, which the bill claims to protect.

Tech Giants Under Fire, Banks Lobbying Hard

Deaton sees the bill facing pressure from two major fronts:

🔹 Tech giants like Meta want to issue their own stablecoins, but the bill would block this by requiring special licenses for non-financial public companies.

🔹 Banking lobbies push back against allowing stablecoins to pay interest, viewing them as a threat to the traditional financial system.

Trump’s Involvement and a Divided Congress

Another sticking point is Donald Trump’s ties to the crypto space. His family controls World Liberty Financial and the USD1 stablecoin, sparking concern among some Democrats — including Senator Elizabeth Warren and Representative Maxine Waters — that the bill might unintentionally benefit Trump’s business interests.

On the other hand, Senator Mark Warner publicly supports the legislation:

“With the stablecoin market nearing $250 billion, the U.S. cannot afford to sit on the sidelines. We need clear rules that protect consumers, defend national security, and encourage responsible innovation.”

Deaton: No Passage, No Progress

Deaton concludes that if the GENIUS Act fails to pass, crypto regulation in the U.S. will come to a standstill:

“This bill isn’t perfect. But it’s the best chance we have to move the American crypto industry forward — no matter your political party.”



#cryptoregulation , #Stablecoins , #CryptoNews , #DigitalAssets , #GENIUS

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