At the DC Blockchain Conference 2025, Senator Kirsten Gillibrand emphasized that stablecoin issuers should not provide profit opportunities to protect the traditional banking system, which provides mortgages and capital loans for small businesses. The Senator from New York praised her state's strong financial regulations and recommended applying them to the entire financial services industry.
Gillibrand stressed the necessity of applying these regulations to stablecoin issuers, whether at the state or federal level, to ensure legal compliance and consumer protection. She questioned whether stablecoin issuers should be allowed to provide interest rates, as this could eliminate the reason for depositing money in local banks, posing a risk of banking system collapse.
Gillibrand is a co-sponsor of the GENIUS law on stablecoin, proposed by Senator Bill Hagerty, with the aim of establishing a comprehensive legal framework for cryptocurrency Tokens. The law has been updated to include anti-money laundering regulations, know-your-customer (KYC) requirements, and consumer protection measures.
Opponents of the GENIUS law argue that it is an effort to establish central bank digital currency (CBDC) through private means. Some are concerned that stablecoins could lead to financial censorship and government surveillance, affecting individuals' financial freedom.
