The GENIUS Act seeks to establish a federal regulatory framework for payment stablecoins, but has faced hurdles in progress in recent weeks due to a divide among lawmakers.
In subsequent days, reports of a bipartisan effort to re-adapt the bill for another vote surfaced, resulting in changes to the proposal initially denied.
While supporters say the bill would bolster US dollar dominance and provide critical oversight to a $250 billion market, opponents argue the latest draft contains broad loopholes for political figures and tech companies while creating security risks and insufficient consumer protections.
The memo concluded that the draft’s updates are “fig leaves,” restating existing protections without materially addressing national security concerns, sanctions enforcement, or misleading marketing by issuers.
In contrast, bill proponents, including Senate Republicans, industry groups, and some moderate Democrats, framed the GENIUS Act as a needed legislative foundation.
Slaugther added that while the bill isn’t perfect, it addresses the regulatory void surrounding stablecoins and mirrors the approach adopted by the EU, UK, and Japan.
