Guiding and Establishing National Innovation for U.S. Stablecoins Act

Floor Speech

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Mr. CASTEN. Mr. Speaker, if I were to describe Jeffrey Epstein as a nice family man who works in finance, you might question why I am saying that. If someone says that something that is neither a coin nor stable is a stablecoin, you might question why they are saying that because they aren't stable.

Terra, which was a stablecoin, collapsed at 30 cents and wiped out $40 billion in investor value. That was an algorithmic stablecoin. More recently, as the ranking member has noted, USDC, a so-called stablecoin, fell to 88 cents and only exists today because taxpayers bailed them out.

These are some of the reasons why central bankers last week issued a warning that stablecoins threaten global financial stability and need a much more restrictive regime compared to traditional finance.

The GENIUS Act ignores all of those experts and, instead, ties stablecoins into our financial system but without the safeguards that are required by banks and investment companies.

As the ranking member noted, this allows Big Tech companies to issue stablecoins and amass consumer data at the same time we are gutting the Consumer Financial Protection Bureau, which protects consumers.

It allows issuers to cherry-pick the lightest-touch regulator between the Federal Government and any of the 50 States.

Rather than fixing the problems created when Silicon Valley Bank collapsed, it makes them worse by saying that you can have uninsured deposits. Yet, if there is a run on a future Silicon Valley Bank, the stablecoin issuers have a superior claim over every single person in this room who has a legitimate deposit in that bank.

My colleagues have said that this has a one-to-one requirement, except that it is not audited. There is only an audit requirement for companies over $50 billion in assets, which is only two stablecoins. Donald Trump's stablecoin just has to say that they attest that there was value in there on the 30th day of the month, and we don't have an auditor. That isn't one-to-one certification.

Finally, the GENIUS Act is a missed opportunity to limit foreign influence. We know that, recently, a convicted money launderer wrote the code so that the United Arab Emirates could buy $2 billion of Trump's stablecoin, which allowed President Trump to earn $30 million on the transaction.

Now, this convicted felon--

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Mr. CASTEN. Mr. Speaker, I should clarify that the convicted felon I am referring to is the guy who ends up trading--

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Mr. CASTEN. Mr. Speaker, the convicted felon I am referring to is the guy who ran Binance and not the President, but he is seeking a Presidential pardon.

Mr. Speaker, the GENIUS Act sets the stage for an exponential crisis and allows the President to continue cheapening the office for his own financial gain, and I urge a strong ``no.''

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