US Senate passes the GENIUS Act, advancing stablecoin regulation amid political debate.
Contents
2 min read
US Senate Approves GENIUS Act for Stablecoins
The United States Senate has taken a significant step towards regulating stablecoins by passing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The bill was passed in a 68-30 vote without amendments addressing former President Donald Trump’s ties to World Liberty Financial, a point of contention for many Democrats.
The legislation, introduced by Tennessee Senator Bill Hagerty, aims to position the US as a leader in cryptocurrency by allowing businesses to make near-instantaneous payments. The bill’s companion, the STABLE Act, is next in line for consideration in the House of Representatives, where it may encounter proposals for further amendments.
Related: GENIUS Act: Impact on Stablecoin Market
Senate Vote and Legislative Journey
Senator Hagerty expressed optimism about the bill’s impact, stating, “With this bill, the United States is one step closer to becoming the global leader in crypto.” Despite initial setbacks in May due to Democratic resistance, the bill has now cleared the Senate hurdle.
The House, where Republicans hold a slight majority, is expected to deliberate on the GENIUS Act next. Trump’s AI and crypto advisor, David Sacks, has indicated the former president’s support if the bill advances through the Republican-majority Congress.
Related: Genius Group Incorporates Bitcoin into Their Treasury Strategy
Potential Impact on Big Tech and the Market
If recognized under a US regulatory framework, stablecoins could lead to a surge in companies issuing their own tokens. Major tech firms like Apple, Google, and Airbnb are reportedly exploring stablecoin adoption. Additionally, Treasury Secretary Scott Bessent has projected that stablecoins could expand into a $3.7 trillion market by the decade’s end.
Related: Former Senator Pat Toomey Comments on Challenges Faced by Proposed Stablecoin Bill
House Awaits CLARITY Act Vote
Meanwhile, the House is preparing to vote on the CLARITY Act, designed to establish clear market rules for digital assets. Although it has progressed through relevant committees, it faces opposition over Trump’s crypto connections.
Critics like Bartlett Naylor from Public Citizen argue that lawmakers have missed an opportunity to address Trump’s alleged crypto conflicts. These legislative efforts have sparked debates over the legitimacy and implications of Trump’s involvement in the crypto sector.
Emily brings a decade of expertise in blockchain technology and decentralized finance (DeFi). She specializes in market trends and regulatory developments, providing in-depth analyses that resonate with seasoned investors and beginners alike. With a background in financial journalism, she is dedicated to bringing clarity to the fast-paced world of crypto.
