The US Senator Kirsten Gillibrand (DN.Y.), one of the leading Democrats who supports the crypto rejection, warned the industry against pushing for a “water” version of the long-awaited stableecoin laws currently moving through the Senate, and arguing that strict rules are needed to promote innovation and protect investors against banking. Valley in 2023 and The Collaps of Cryps FTX in 2022.

In a speech at the DC Blockchain summit in Washington, DC on Wednesday, Gillibrand said that the Bipartisan stableecoin -Bill proposal -which controls and establishes National Innovation for US StableCoins Act (Genius Act) -creates a number of protections for consumers in the event of a bankruptcy scenario.

“You have to think about all the ways this can go wrong. Something as simple as how you define a dollar-is a treasury the same as a dollar? What happens if your 1 to 1 back is in treasuries and you have an interest rate snuster your stableecoin, it’s a breakdown,” GilliBrand said.

If the requirements for dollar support are not met or enforced, Gillibrand said, “You just have another FTX. You just have another algorithmic stableecoin throwing itself because it never really made sense. It’s a huge problem for the US market.”

“The worst thing we could do is water it down,” Gillibrand said. “Don’t think a diluted bill will help your industry. It will ruin your industry. Because a more SVB, a more algorithmic stableecoin [collapse]just continues to create such uncertainty that no one wants to do business in the United States. “

After many years of fake starts, it seems that stablecoin legislation is finally getting speed. Earlier this month, the US Senate Bank Committee voted to promote the genius to a Senate vote. A similar bill from the US Representative House is expected to publish Wednesday.

Read more: US House StableCOin Bill is ready to go public legislator on top of the Crypto Panel says

Gillibrand said that if Congress is able to get the ingenious action signed in the law, it is more likely that it may be able to make progress with a bill for the market structure.

“A market structure bill is much more complicated. It regulates the entire industry, not just a version of a digital asset,” said Gillibrand. “So it is really important that we do it right so that we can move to something much bigger and something we need to build even wider agreement around.”

A market structure bill would create a regulatory framework for the crypto industry as a whole, giving crypto companies and issuers of digital assets clearer rules for the road and a framework to determine whether their tokens are securities or not – and therefore who their primary regulator is.

When talking about the same panel, Senator Bernie Moreno (R-Ohio) suggested that any digitally asset with a centralized issuer is likely to be a security, not a product.

“If your digital currency has a CEO, it’s not a commodity, by definition,” Moreno said.

During another panel discussion on the same event on Wednesday, Senator Tim Scott (Rs.C.) said that the future market structure bill would have to “find a way to create a structure that works beyond the two main categories” of security versus raw material.

Moreno said he would see the brilliant action adopted before the exit in August.

“I put gauntlet – let’s get this done in August recess, what do you think? Market structure, Genius action, [Strategic Bitcoin Reserve]All in August, ”said Moreno.

Gillibrand tempered expectations and told Moreno that there was no way to get a market structure bill performed in August, but that Congress “will definitely get stableecoins done” before the summer holidays – maybe she changed, even before the East in April, “if we are really productive.”