'Poison pill' GENIUS Act amendments less likely to move forward
As the Senate draws closer to considering the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (S. 1582), efforts by Senate leadership and credit union advocates are slowing efforts to add poison pill amendments. One such amendment, offered by Sen. Roger Marshall, R-Kan., would insert text of his previously introduced Big Box Bailout bill into the GENIUS Act.
Senate Majority Leader John Thune, R-S.D., filed for a second cloture vote Monday without Marshall’s amendment. Thune also filed an amendment tree that would limit the ability of additional amendments without unanimous consent. There will be 30 hours of debate on the GENIUS Act before the cloture vote.
This follows grassroots efforts by America’s Credit Unions and the leagues urging senators to reject attaching poison pill language to a stablecoin bill that credit unions otherwise support.
New interchange handouts from America’s Credit Unions help explain why the Big Box Bailout bill language is strongly opposed by credit unions, as it would mandate the use of third-party payment networks without the same level of cybersecurity protection and infrastructure currently in place. The Electronic Payments Coalition—of which America’s Credit Unions is a member— also released a new fact sheet.
Credit union advocates are encouraged to use the handouts to explain the issues at hand and emphasize concerns with their Senators. If the cloture motion passes, the Senate will proceed to debate the GENIUS Act. That would include any amendments that are agreed upon, in advance of a final vote. Even with the exclusion of the the two poison pill amendments in Sen. Thune’s filing, there remains potential for amendment agreements through unanimous consent and hotline efforts.
The America’s Credit Unions and EPC handouts demonstrate how the bill would harm consumers, financial institutions, and small businesses while benefiting the largest retailers.
These concerns are reinforced by a University of Miami’s School of Finance study released last month. It shows changes to the interchange system would harm consumers, especially those in small communities and low-income households.
In addition to the Big Box Bailout amendment, America’s Credit Unions opposes an amendment to cap credit card interest rates at 10%, offered by Sen. Josh Hawley, R-Mo. Hawley’s amendment was also not included in the cloture motion filed by Thune.
Grassroots action and other interchange information is available through the Protect Interchange website.
