Wyoming Senator Lummis Opposes Reopening GENIUS Act Amid Banking Industry Criticism

Senator Cynthia Lummis expressed opposition on Nov. 5 to revising the GENIUS Act despite complaints from the banking industry over stablecoin regulations. The Wyoming Republican stated it was “so difficult to get GENIUS passed” that she is reluctant to reopen the legislation during a Bloomberg Television interview.

The banking industry has raised concerns about provisions preventing stablecoin issuers from paying yield while allowing cryptocurrency exchanges such as Coinbase to offer rewards to users holding stablecoins.

Lummis acknowledged understanding “the frustration of the community banks” but maintained her position against revisiting the law, according to her remarks on the broadcast. The conflict represents a broader tension between traditional financial institutions and the cryptocurrency sector over regulatory frameworks.

Lummis encouraged community banks to embrace digital asset custody opportunities, emphasizing that they will “have access to custody and include and incorporate digital assets into their offerings as banks.” She framed cryptocurrency adoption as essential for financial institutions to remain competitive in modern markets.

State-Level Digital Asset Banking

Three states have already authorized community banks to custody digital assets: Louisiana, Virginia, and Wyoming. Lummis indicated these early adopters provide a model for broader implementation. The senator referenced Western Union’s stablecoin launch as evidence of growing institutional interest following regulatory clarity from the legislation.

Lummis described digital assets as “the future” and “the 21st-century economy,” arguing that community banks must participate to serve evolving customer needs. The Genius Act fueled stablecoin growth across the sector, with new market entrants citing the regulatory framework as enabling expansion.

Broader Policy Engagement

The senator met with UK Parliament members Dr. Lisa Cameron, Lord Ranger, and Lord Uddin to discuss establishing a US-UK financial technology sandbox, which would allow blockchain and digital asset firms to experiment under relaxed regulatory requirements.

Lummis also expressed support on Nov. 5 for Circle’s decision to permit legal firearm purchases using its stablecoin, stating the change “defends constitutional rights” and prevents financial systems from being “weaponized against law-abiding gun owners.”

The senator has been active on cryptocurrency policy issues, including advocacy for the US strategic Bitcoin reserve. She previously challenged the US Marshals Service over their decision to sell off the Silk Road Bitcoin.

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