US Senate Advances GENIUS Act for Stablecoin Regulation

The US Senate has taken a significant step forward in regulating the cryptocurrency industry with a 66–32 procedural vote on May 19 to advance the GENIUS Act. This landmark bill aims to establish a comprehensive regulatory framework for stablecoins, addressing foundational questions around their issuance and oversight. The GENIUS Act, which stands for “Guiding and Establishing National Innovation for U.S. Stablecoins Act,” defines the concept of a payment stablecoin and outlines guidelines for who can be permitted issuers, including bank subsidiaries, credit unions, and approved non-bank entities.

Rashan Colbert, director of US policy at the Crypto Council for Innovation, highlighted the significance of this bipartisan momentum. He noted that while there has been latent support within Congress, including within the Democratic caucus, there hasn't been an opportunity for meaningful votes until now. The GENIUS Act seeks to provide a robust framework for stablecoin issuance, ensuring that only qualified entities can participate in this critical aspect of the cryptocurrency ecosystem.

Meanwhile, in the House of Representatives, Representative Tom Emmer reintroduced the Blockchain Regulatory Certainty Act with bipartisan support. This act aims to provide legal clarity to developers and service providers who do not custody customer funds, clarifying that they are not considered money transmitters. This clarification is crucial for the continued operation and success of these builders and entrepreneurs in the crypto space.

Colbert emphasized the growing adoption of cryptocurrency, particularly among minority communities. He noted that a significant portion of Americans hold crypto, with even higher adoption rates in Black, Latino, and Asian-American communities. This trend underscores the importance of regulatory clarity and support for the crypto industry to ensure its continued growth and innovation.

Looking ahead, the push for broader market structure reform in the crypto industry will be more complex. Colbert advised that public involvement is key to driving meaningful change. He emphasized that the voices of the people are crucial in shaping the regulatory landscape for cryptocurrency, as Capitol Hill is finally starting to listen to the needs and concerns of the crypto community.