Stablecoins First Over Other Crypto Agenda: Senate Hearing On Digital Assets Triggers Frustration

Cryptocurrency users on X are less than pleased after tuning in to Wednesday's Senate Banking Committee hearing led by Digital Assets Subcommittee Chair Sen. Cynthia Lummis, R-Wyo., after stablecoins took center stage over other crypto segments in the discussions.

"We're gonna start with stablecoins," she revealed, drawing comments of disappointment and frustration among crypto users on X (formerly Twitter).

Lummis, Hagerty Hail GENIUS Act

In her opening statement, Lummis, known for her promise to Bitcoiners of pushing forward a national strategic Bitcoin reserve, highlighted the GENIUS Act, or the Guiding and Establishing National Innovation in U.S. Stablecoins Act, which she said will make "the U.S. dollar fit for the digital age" and will ensure that payments are facilitated "faster and cheaper."

The GENIUS Act has some "America first" provisions, including one that indicates stablecoin issuers will be required to hold reserves for stablecoin payments in U.S. dollars, Treasury bills, and Federal Reserve notes.

Jai Massari, the co-founder and chief legal officer at Lightspark, a company building on Bitcoin and the Lightning Network, was asked about stablecoins and their use case in the broader payment sector.

Massari said she views stablecoins as "a new, fast money," noting how stablecoins are "a new form factor for money that can work as digital cash." She further pointed out that stablecoins are available for transaction 24/7, something that isn't provided by traditional institutions.

Sen. Bill Hagerty, R-Tenn., who introduced the GENIUS Act and is co-sponsored by Lummis, highlighted how important it is for the U.S. to be a "leader in payments stablecoins."

The hearing also discussed other topics such as securities laws and their applications on digital assets and blockchain technology, but most of the discussions were on stablecoins.

Crypto Users Express Disappointment Over Hearing's Focus

Many crypto users were grateful that the subcommittee discussed stablecoins, but many others questioned why other aspects of the broader crypto industry were not raised during the hearing.

"Another nothing burger, classic. Just more stablecoin talk," said prominent trader Rego. "I think I heard stablecoin over 100 times in the past 5 minutes," he added.

An XRP holder said it would be "nice to get hints for XRP and BTC," alluding to Bitcoin and other crypto assets not having been mentioned as prominently as stablecoins.

"Can someone ask about SBR?" said one user who added a laughing emoji, taking a swipe at Lummis, who has repeatedly said she will work hard toward the delivery of a Bitcoin reserve but now seems to have shifted her focus on stablecoin legislation.

One user argued that the hearing was "underwhelming," adding that senators should "get better" if they really want to drive legislation for a digital assets framework.

"Sorry, Sen. Lummis, you seem nice, but I am starting to have my doubts. I'm pretty sure most of us have written off the idea of a SBR already," the user wrote.

Negative comments around a strategic BTC reserve not possible anytime soon reflect sentiments on decentralized market prediction platform Polymarket.

Chances of a strategic Bitcoin reserve being established within U.S. President Donald Trump's first 100 days in office have fallen to 10% as of late Wednesday from a peak of 60% in November. At one point in January, odds surged to 44%, but it appears crypto bettors on the platform are losing hope.