The US Senate is reportedly poised to approve significant legislation regulating stablecoins. This bill, known as the GENIUS Act—an acronym for “Guiding and Establishing National Innovation for US Stablecoins”—marks a pivotal moment for the crypto industry as it seeks to gain legitimacy and instill confidence among consumers. The legislation will soon move to the House for potential amendments.
If approved, this would represent the second major bipartisan measure to advance through the Senate this year, following the Laken Riley Act addressing immigration enforcement.
Senator Angela Alsobrooks, a Democrat from Maryland, expressed optimism about the bipartisan effort, noting, “We weren’t able to include everything we would have wanted, but it was a good bipartisan effort.” She emphasized the importance of regulating an area that has previously been unregulated.
One notable provision within the GENIUS Act prohibits members of Congress and their immediate families from profiting off stablecoins, although this restriction does not extend to the president and his family.
However, the bill encountered setbacks earlier this month when a group of Senate Democrats withdrew their support, prompting renewed negotiations among Senate Republicans, Democrats, and the White House.
Despite these efforts, unresolved concerns regarding presidential conflicts of interest linger, particularly among Democratic lawmakers. Senator Elizabeth Warren, a vocal critic and the ranking member of the Senate Banking Committee, has cautioned that the bill could create a “super highway” for potential corruption linked to Trump.
Should the Senate pass the stablecoin legislation, it will still face significant hurdles in the House, where the Republican majority may seek to attach broader market structure provisions to the bill. This could complicate its passage and delay its arrival at the president’s desk.
Featured image from DALL-E, chart from TradingView.com
