Ripple CTO David Schwartz Supports Allegation that Regional Banks Are Obstructing Stablecoin Legislation

By: cryptonews|2025/05/14 22:30:06
0
Share
copy
There is a discussion going on among crypto enthusiasts, with the topic being that someone is adamant about tanking the stablecoin legislation. The main suggested culprits are regional US banks, and Ripple’s CTO David Schwartz seems to agree, saying: “That’s what I’m hearing.” Banks’ Fear of Disintermediation Cited as Key Motive Fear has been cited as the main reason why this may be true. Banks fear stablecoins could disintermediate their market share, with critics like Senator Elizabeth Warren proposing amendments to block tech firms from issuing stablecoins. This just highlights tensions between traditional finance and crypto innovation. The notion isn’t anything new, as it’s been talked about before how traditional banking institutions perceive stablecoins as a competitive threat to their dominance in payment systems. This also explains why the stablecoin bill GENIUS Act failed in its recent vote. GENIUS Act One of the main legislations surrounding stablecoins is the GENIUS Act. Short for ‘Guiding and Establishing National Innovation for US Stablecoins’, it seeks to regulate stablecoin issuers and integrate them into the US financial system. Two months ago, the GENIUS Act passed the Senate Banking Committee with an 18-6 vote to regulate stablecoins comprehensively. However, earlier this month, it failed to pass a full Senate vote, as the bill didn’t get the 60 votes needed due to nine Senate Democrats withdrawing their support, as well as two of their Republican peers. Some mentioned the insufficient anti-money laundering provisions and potential national security risks as reasons for withdrawal, while other reasons were reports of Donald Trump’s ties to crypto ventures, including a $2 billion investment in a Trump-affiliated stablecoin. Such a turn of events could point to deep divisions and the influence of external factors like the banking sector lobbying. Influence on the Crypto Ecosystem The interplay between traditional banking interests and emerging crypto regulations will likely shape the future of the financial industry. If the GENIUS Act or any similar stablecoin bills pass in the future, it could be seen as a potential disruptor to banks’ traditional financial services. For instance, stablecoins could enable peer-to-peer transactions without the need for usual banking intermediaries. Whatever the case, the sooner this is done, the better it will be for the crypto industry, as clear and fair regulations could bolster investor confidence, while prolonged uncertainty may hinder the growth of the crypto sector. Still, one thing is for sure – the outcome of the GENIUS Act will set precedents for how digital assets are integrated and regulated within the US financial framework. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

You may also like

Looking at Stripe's ambitions and the future of stablecoins from OUSD

Stripe enters the stablecoin network battle with OUSD, a comprehensive look at the third paradigm evolution of digital dollars and the new infrastructure for global payments in the AI era.

Do you want to buy CRCL?

A detailed breakdown of Circle's business fundamentals and valuation logic: The panic over OUSD and the market correction have triggered a short-term mispricing, presenting an opportunity for left-side positioning and legislative speculation below $60.

Wosh: Inflation has cooled in recent weeks, AI is reshaping the economy, and forward guidance has lost its necessity

Federal Reserve Chairman Waller clearly stated at the ECB forum that the Fed will abandon forward guidance on interest rates, with future decisions relying entirely on real-time economic data. He noted that inflation risks in the U.S. have decreased over the past four weeks, but the ultimate impact ...

The most secretive AI winner

A century-old company that sells toilets and produces MSG has seen its stock price soar by "positioning" core materials for AI chips. This article clarifies the explosive opportunities for domestic substitution of semiconductor materials in the A-share market.

Former ByteDance employee's account: How I started with two Pinduoduo hard drives and made six times the profit with Seagate to achieve financial freedom?

A programmer from a big tech company bought hard drives on Pinduoduo and, following clues, managed to accurately capture the sixfold rising stock Seagate using the "finding daily anomalies + 13F institutional verification" framework, making a wild profit of $400,000 and achieving financial freedom.

MiCA reshuffle begins, Binance temporarily bids farewell to the EU

What Binance leaves behind is not scattered retail investors, but a whole batch of high-value users who are forced to liquidate and have almost nowhere to go.

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com