Although the genius law is the stablecoin bill, US-based bitcoin lovers should be aware of the bill because it is related to the ability to deal in particular with the encryption assets-including Bitcoin.
Two documents recently distributed between the Senate Banking Committee indicate that Democrats in the Senate want to see amendments to the genius law that would significantly reduce the user’s privacy in encryption transactions.
Democrats analysis of the Senate of the Genius Law
The first of these two documents is a pistol entitled “entitled”The Banking Committee Analysis of Democratic Employees on the latest draft genius law“.
NEW: Democrats of the Senate Banking Committee dropped a major analysis of employee employees of the last draft genius law before the vote of this evening.
Employees describe the latest ACT Genus draft as a “Trump Crypto Estruption” and great technical dominance on digital … pic.twitter.com/gqd2lxfgx1
Eleanorterrett May 19, 2025
This document is filled with the type of discourse, which is usually associated with a member of the Senate Banking Committee, Senator Elizabeth Warren (D-MA).
It refers to stablecoins as illegal financing tools (although this is the fact that this Stablecoin, Tether, often works with the Ministry of Justice and the Federal Investigation Office To stop illegal use of stablecoins).
It also states that the current repetition of the genius law “does nothing to impose basic obligations actually on (encryption mixers) to prevent illegal financing.”
This last criticism of the draft law contradicts the directive presented by the Deputy Public Prosecutor (DAG) Todd Blanche in A. note On April 7, 2025, Daj Blanche stated that the Ministry of Justice will not target encryption services for the work of its final users.
However, in this document, Democrats in the Senate notes that they are planning to continue targeting the technique of mixing encryption instead of those who misuse it.
If the amendments to targeting encryption mixers are added to a revised version of the Genius Act, this may have an impact on Bitcoin users who use this technology as maintaining their privacy.
A message from Democrats who oppose the action of the genius
The Senate Banking Democrats distributed a second document on Monday.
This document, a message signed by 46 advocacy groups, opposed the law of genius.
Brendan Pedersen Punchbowl news Joint clips from the letter on X.
The authors of the letter claim that the genius law does not do enough to partially prevent unlawful financing because it still allows “self -hosted portfolios that lacks knowledge requirements (KYC).”
If the genius law is amended so that Kyc requires all the governor that touch Stablecoins-the portfolio of self-constant-it is possible that it is a matter of time only before creating a similar organization for the Bitcoin Governor.
The peculiarity of bitcoin transactions at stake
Just because the genius law does not refer directly to Bitcoin does not mean that Bitcoin will not be affected by it.
If the Democrats in the Senate reaches their path and encryption mixers become a target for the draft law and/or if the bill requires that all the portfolios that touch Stablecoins require users to KYC, and the law is enacts in the law, then the lack of disclosure of his identity in encryption transactions will become a crime.
Therefore, although some bitcoin devices may be anti -nails, most of them, I would like to bet, are not effective. Therefore, they are supposed to contact their elected officials to urge them to vote on “no” for the genius law if the next repetition of the draft law restricts the ability to deal with the private sector.
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