Senate Poised to Pass GENIUS Act: A New Era for Stablecoin Regulation
The Senate is set to approve the GENIUS Act, aiming to regulate stablecoins and enhance crypto legitimacy. Discover its impact on the industry.
The U.S. Senate is on the brink of approving the GENIUS Act, a groundbreaking piece of legislation designed to regulate stablecoins, a form of cryptocurrency typically pegged to the U.S. dollar. This legislative move marks a significant step towards bolstering the legitimacy of the crypto industry and reassuring consumers. The bill represents a bipartisan effort, with 18 Democratic senators joining the Republican majority in a 53-47 Senate, showcasing the growing influence of the crypto sector in Washington.
The GENIUS Act, officially known as the 'Guiding and Establishing National Innovation for U.S. Stablecoins,' aims to establish necessary guardrails and consumer protections for stablecoins. Although it has faced some resistance, the bill passed its biggest procedural hurdle last week in a 68-30 vote, clearing the path for final approval. The legislation includes a provision that bans members of Congress and their families from profiting off stablecoins, although this does not extend to the president and his family.
President Donald Trump has expressed support for the growth of the crypto industry, reflected in his financial involvement with World Liberty Financial, a crypto project that has launched its own stablecoin, USD1. The president's engagement with the crypto space has raised concerns among some Democrats, who fear potential conflicts of interest. Sen. Elizabeth Warren, D-Mass., has been particularly vocal, warning that the bill could create opportunities for presidential corruption and allow major tech companies to launch their own stablecoins.
Despite these concerns, the crypto industry views the GENIUS Act as a bipartisan triumph, with Coinbase CEO Brian Armstrong praising the legislation's potential impact on the U.S. stablecoin market. Treasury Secretary Scott Bessent echoed this sentiment, predicting that the market could exceed $2 trillion by 2028.
If the Senate approves the GENIUS Act, it will move to the House, where it may face further challenges, including the possibility of being tied to broader market structure legislation. The crypto industry remains optimistic, hoping to see the bill on President Trump's desk before Congress breaks for its August recess. As the GENIUS Act approaches potential enactment, it symbolizes a pivotal moment in the integration of digital assets into the U.S. economy.