Blockchain Association Backs Senate's GENIUS Act for Stablecoin Regulation

The Blockchain Association has expressed its support for the Senate's advancement of the GENIUS Act, a bill aimed at establishing a comprehensive regulatory framework for stablecoins. The organization's Interim CEO and Head of Policy, Sarah Milby, described the recent cloture vote as a significant step towards creating clear and sensible regulations for stablecoins.

Milby highlighted that the bipartisan progress on the GENIUS Act reflects a growing acknowledgment of the need for a regulatory framework that fosters innovation, ensures consumer protection, and maintains the U.S.'s leadership in digital assets. The procedural vote saw 66 senators vote in favor of the bill, although 32 lawmakers continued to withhold their approval following weeks of partisan disputes within the blockchain sector.

The legislation had previously failed to advance in a vote held nearly two weeks prior. Reports suggested that the Trump-affiliated World Liberty Financial’s stablecoin, USD1, was involved in a deal between Abu Dhabi-based investment firm MGX and Binance. Senator Elizabeth Warren criticized the GENIUS Act, stating that it would accelerate corruption by expanding the stablecoin market and the influence of USD1. Warren also expressed concern that the bill would make President Donald Trump the regulator of his own financial product.

President Trump is scheduled to host top investors in his meme coin, $TRUMP, at an exclusive gala dinner in Washington, D.C., on May 22. Critics have raised ethical concerns, suggesting that foreign influences could gain Trump's favor by purchasing large amounts of the coin.

The GENIUS Act is anticipated to undergo a full Senate vote sometime after Memorial Day. The industry awaits the final vote with anticipation, hoping for a regulatory framework that balances innovation with consumer protection.