New legislation on cryptocurrency should close all loopholes in this corrupt era

In today’s world, a proposed crypto law is being discussed in Congress, aiming to regulate stablecoins, a specific type of cryptocurrency tied to the U.S. dollar. This debate raises concerns about the evolution of the American regulatory system and the alleged corruption witnessed during the second Trump administration.

The GENIUS Act, set to be approved by the Senate soon, has garnered support from both Democratic and Republican senators, marking a rare instance of bipartisan cooperation in the current political climate. This legislation would authorize stablecoins, drawing favor from Silicon Valley, Big Tech, and Wall Street.

Unlike traditional cryptocurrencies like bitcoin, stablecoins are intended to have tangible U.S. dollars as collateral, emphasizing the need for robust regulatory oversight. The bill would grant various federal bodies like the Securities and Exchange Commission and the Treasury Department the authority to craft specific regulations to implement the law effectively.

Historically, regulatory frameworks have empowered specialized agencies to enforce financial laws at their discretion. However, in today’s political landscape, the autonomy of these agencies has been compromised under the current administration. President Donald Trump’s intervention in regulatory bodies, staff alterations, and deregulatory activities have dismantled the long-standing tradition of impartial financial oversight.

With Trump’s appointees, like Paul Atkins at the SEC and Brian Quintenz at the Commodity Futures Trading Commission, having strong ties to the cryptocurrency industry, concerns about conflicts of interest and regulatory capture arise. Criticism also surrounds Trump’s involvement in memecoins and stablecoins, raising questions about potential exploitation of these platforms for personal gain and foreign interests.

The influx of crypto enthusiasts in regulatory positions signals a departure from the traditional ethos of impartial oversight and investor protection in financial markets. This shift highlights the compromised state of financial regulation under the Trump administration and the implications for sustainability and integrity in the evolving financial landscape. As Congress deliberates on legislation concerning stablecoins, the complex intersection of politics, finance, and technology underscores the importance of vigilant regulatory oversight to safeguard the interests of stakeholders and maintain market stability.