Latest progress on the U.S. encryption bill! Senator Gillibrand: Start with stablecoins, if we don't legislate, we'll wait for the next FTX.

Together with cryptocurrency-friendly Senator Cynthia Lummis, Democratic Senator Kirsten Gillibrand stated in an interview on April 8 that 2025 will be a significant turning point for cryptocurrency legislation in the United States regarding the Responsible Financial Innovation Act (RFIA). After three years of back-and-forth revisions, the RFIA has finally entered Congressional discussion, with the first wave of the bill focusing on "stablecoins" and "market structure." Gillibrand bluntly warned that if legislation is not passed soon, we should brace for the next FTX incident.

Gillibrand claimed that she foresaw the future three years ago and vigorously invested in the revision of the encryption bill.

In 2022, Gillibrand teamed up with Lummis to introduce a cryptocurrency legislative proposal, but it did not attract much attention at the time. Now, after the FTX collapse and rampant fraud in the market, U.S. Congress and regulatory agencies are starting to take cryptocurrency legislation seriously.

She stated that she initially saw how encryption currencies and blockchain technology could significantly improve financial inclusion and data transparency, and could also be applied in fields such as healthcare, identity verification, and AI, which is why she decided to get involved.

Stablecoins are the easiest to handle, let's start from this area.

Gillibrand emphasized that the design of their bill is very clear, hoping to break through Congressional defenses with this "simple and user-friendly" bill:

Each stablecoin must have a 1:1 dollar reserve.

Clearly define who can issue and accept which type of regulation.

Transparent, safe, responsible

Gillibrand, coming from a background as a securities lawyer, can certainly regulate encryption.

She also emphasized, stop saying that encryption cannot be regulated: "The credit default swaps from the financial crisis in 2008, (CDS), were really difficult to understand, but I got it. Cryptocurrencies are just a new type of asset, essentially very similar to previous financial products."

She bluntly pointed out that whether it is securities, banks, or futures regulatory agencies, the United States actually has all the tools, it's just that the legislation has not kept up.

If there is no legislation, wait for the next FTX to appear.

Gillibrand believes that the collapse of FTX was due to "the lack of rules to govern it," and that it was also not based in the United States. If another similar crash occurs, countless American retail investors will be the victims.

She also criticized some officials for adopting an "ostrich mentality," pretending that the problem does not exist.

State-owned bank scammed out of 40 million, highlighting the urgency of legislation.

She cited an example where the Kansas state bank in the United States, (Kansas), was defrauded of 40 million dollars by an overseas scam group using a false encryption investment scheme.

Although part of the funds were recovered through trading records, she pointed out: "The transparency of the blockchain is an advantage. If there were proper regulations, this money should never have flowed out."

Both houses of Congress have stablecoin bills in progress, which need to be summarized and reach a consensus.

Currently, the Senate has the "Genius Act" regarding stablecoins proposed by Gillibrand and Lummis, while the House bill is preparing to be put to a vote.

But Gillibrand indicated that the contents of the two bills are slightly different, and he hopes to consolidate opinions from all sides and incorporate the agreed-upon stablecoin provisions into the market structure bill.

Preventing the stablecoin issued by China from interfering with the US market is the focus.

Gillibrand emphasized that the U.S. legislation must stipulate: "As long as encryption assets are sold or issued within the United States, regardless of whether they are issued by China or not, they must comply with the same set of rules."

She worries that if competing countries ( China ) circumvent U.S. regulation, stablecoins could be used to "wreak havoc."

Which are securities, commodities, or jokes, defining asset types is key.

Gillibrand also revealed that how to define asset types is the key to the bill:

Like Bitcoin (BTC) decentralized, with no issuing company: goods

If the coin price is closely tied to the performance of a certain company: it is initially determined to be a security.

Like Trump Coin (TRUMP) this kind: Collectibles (Collectibles)

She believes that a "multi-departmental review mechanism" is needed, where units such as the Treasury Department, SEC, and CFTC discuss which category each encryption asset should belong to.

To curb the dominance of meme coins, warning labels must be indicated.

Gillibrand is concerned about the recent proliferation of meme coins, so she argues that meme coins should carry warning labels.

Just like the warning "This will kill you" on a cigarette box: "Consumers should be clearly informed that this has no value, and you might lose everything."

The timing for legislation is ripe, and the first formal bill is expected to be pushed out in 2025.

Gillibrand emphasized that it is a rare moment for Congress to achieve bipartisan consensus. Currently, several encryption bills have passed committee review, and she expects the first encryption bill to be passed within this year.

She also urged the industry and the general public to actively participate: "Even if you can't meet the legislators in person, you should clearly communicate your business and your needs to their aides, helping them understand the industry."

It is not about blocking innovation, but about allowing innovation to go further and more steadily.

Gillibrand's stance is quite clear; she stated that the legislation aims to make the encryption industry safe, reliable, and capable of long-term development. She further believes that:

The potential of encryption technology is immense and should not be obscured by meme coins and shitcoins.

Clear rules are necessary to protect retail investors from being scammed and exploited.

Only by having its own legislation and system can the United States become a "trusted country" among global financial centers.

This article discusses the latest progress of the U.S. encryption bill! Senator Gillibrand: Let’s first target stablecoins, if there is no legislation, we will wait for the next FTX to appear. Reported by Chain News ABMedia.