The Daily Punch The Readback: Create a new financial system with one weird trick
Jun 21, 2025
Brendan Pedersen, co-author of The Vault, joins to discuss the groundbreaking Genius Act, which marks the first crypto legislation passed by the Senate. He delves into its significance in creating a federal framework for stablecoin regulation while maintaining states' regulatory powers. The conversation highlights the surprising bipartisan support that emerged after initial resistance and explores the political clout of cryptocurrency in shaping future legislative priorities. This shift reflects the evolving landscape of both finance and politics.
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Historic Crypto Legislation Passed
- The Genius Act is the Senate's first major crypto legislation, creating a federal regulatory framework for stablecoins.
- This is a rare congressional approval of a new financial product, akin to laws that regulated derivatives or banking decades ago.
Bipartisan Deal Despite Political Challenges
- Bipartisan negotiations overcame initial setbacks and partisan concerns, especially regarding President Trump's crypto ties.
- 18 Democrats eventually supported the bill despite concerns about unaddressed presidential conflicts of interest.
Gillibrand's Senate Floor Negotiations
- Senator Kirsten Gillibrand was seen actively negotiating bipartisan support on the Senate floor, binder in hand.
- Her real-time Senate floor diplomacy was unusual and crucial to pushing the bill forward.
