Senate Banking Committee Chairman Tim Scott (R-SC) on Friday told Breitbart News that, as a kid who grew up in poverty, it was “disgusting” to see Senate Democrats block a crypto bill that promotes financial inclusion.
Scott spoke to Breitbart News as Senate Democrats voted to block the advancement of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bill that would establish a clear and light-touch regulatory framework for stablecoins, a key part of the cryptocurrency industry.
Scott said it was “pretty disgusting” to see Democrats put “politics above policy” and move goal posts about the legislation after the Republicans worked untold numbers of hours to achieve bipartisan consensus on the legislation.
The South Carolina Republican said that Democrats “could not get to a yes, because it’s a political decision, not a policy decision, and it’s undeniable that they are trying to appease their radical components of their party, who just don’t want crypto in America and they’ll do anything they can to stop democratization.”
“As a kid who grew up in poverty, I just can’t tell you how frustrating it is to see the kind of gamesmanship that denies access to a cost effective approach to engaging in our financial institutions,” he added.
Stablecoins are dollar-denominated digital assets that are pegged to the value of a fiat currency such as the U.S. dollar. Sending stablecoins is more efficient than sending dollars, which helps expand financial inclusion and strengthen the dollar’s leadership as the world’s reserve currency. It also increases demand for U.S. Treasuries.
Democrats’ scheme to deny the advancement of the stablecoin bill may confuse readers, as many of them had voted for the bill’s advancement in committee. Sen. Ruben Gallego (D-AZ) led the movement to “knife the crypto community” after he received $10 million from a pro-crypto super PAC.
Scott continued, “The truth is that you have to defang the elements within the radical left that want to punish Trump and his agenda at all costs, even the very people they say they represent, and so I’m hopeful that we’ll find many, at least 10 of the Senate Democrats taking a courageous stance against their own party in order to do the right thing for the poorest Americans and the people who are trying to figure out how to become more involved in this financial System. Not feel left behind by the financial system.”
A Federal Deposit Insurance Corporation (FDIC) study found that the American population of those that remain “underbanked” has grown to 14.2 percent. Underbanked households often have a bank account but frequently rely on alternative financial services such as money orders, check-cashing services, and payday loans rather than traditional loans and credit cards.
In 2023, black and Hispanic American households were twice as likely to be underbanked.
Members of the Biden administration have even said that stablecoins could be good for those seeking more payment solutions.
“Stablecoins that are well-designed and subject to appropriate oversight have the potential to support beneficial payments options,” then-Treasury Secretary Janet Yellen said in 2021.
The Digital Chamber, a trade association representing many cryptocurrency companies, has highlighted how stablecoins can promote financial inclusion by “offering accessible and cost-effective financial services to unbanked and underbanked communities:”
For example, stablecoins can help fight global poverty by making cross-border payments faster and more affordable. Today, a typical remittance fee can be as high as 10.9% per transaction, and the World Bank estimates that “[g]lobally sending remittances costs an average of 6.38% of the amount sent. In addition, international money transfers can take anywhere from one to five business days depending on the banks involved, the destination country, bank hours of operation, and currency conversions needed. In contrast, payments providers operating in South America
and Africa using stablecoins charge transaction commissions as low as 1%.Since analysts expect that the remittance market will grow by $200 billion to over $900 billion by 2026, lower fees by use of stablecoins will ensure that more funds go directly to individuals and their families. Domestically, the lack of a real-time, 24/7/365 payment system in the U.S. forms the basis for why Americans pay approximately $26 billion in overdraft and high-cost check cashing fees each year. Stablecoins create opportunities that solve legacy technology issues and save Americans money. [Emphasis added]
Other pro-crypto leaders believe passing this cryptocurrency bill would also allow America to remain a leader in innovation and keep these cryptocurrency jobs in the United States.
Treasury Secretary Scott Bessent said, “For stablecoins and other digital assets to thrive globally, the world needs American leadership.”
He continued:
This bill represents a once-in-a-generation opportunity to expand dollar dominance and U.S. influence in financial innovation. Without it, stablecoins will be subject to a patchwork of state regulations instead of a streamlined federal framework that is more conducive to growth and competitiveness. The world is watching while American lawmakers twiddle their thumbs. Senators who voted to stonewall U.S. ingenuity today face a simple choice: Either step up and lead or watch digital asset innovation move offshore.
Senate Majority Leader John Thune (R-SD) said, “It makes you wonder if this is about the bill at all or if it’s simply Democrats obstructing because they want to deny Republicans and @POTUS a bipartisan win.”
He added that, should Democrats have voted to advance the GENIUS Act, they could have allowed for debate on the bill and potentially change it to alleviate their concerns.
Sen. Bill Hagerty (R-TN), the primary sponsor of the GENIUS Act, remarked, “Democrats just unilaterally ceded American leadership capability in the digital asset industry to the CCP because they fear the far-left radicals of their party. Shameful.”
“It’s important that we continue moving digital asset legislation forward that preserves America’s dollar dominance and makes America the crypto capital of the world,” Sen. Cynthia Lummis (R-WY), who cosponsored the GENIUS Act, said.
Scott said that the greater cryptocurrency industry’s need for energy through Bitcoin and crypto creates the opportunity for America to use its abundant natural resources and other energy resources, such as nuclear power, to create more jobs.
“It requires us to rethink our energy alternatives. Talk about getting to the nuclear small reactor, nuclear future. Think about all of the above strategy. The ecosystem itself presents millions of jobs for hungry Americans who want to get into the middle class or the upper middle class, you can get a six-figure job in some of these industries,” Scott remarked.
The truth is, this is a blue collar coalition that elected President Trump, who desperately needs these jobs and to see the Democrats just, I try not to use the word brain dead, but turn their backs on the very people they say they want to represent that they’ve always represented, and they continue to do the wrong thing time and time again for the very people who are vulnerable economically, desperate for opportunity. So, it is frustrating. As a kid, I used to be one of them,” Scott concluded.
Sean Moran is a policy reporter for Breitbart News. Follow him on X @SeanMoran3.
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