US Senate Approves GENIUS Act With 18 Democrats Supporting Crypto Legislation

Coinbase’s chief of policy, Faryar Shirzad, has highlighted the significant bipartisan support behind the recent approval of the GENIUS Act by the US Senate. This legislation is seen as a pivotal moment for the future of blockchain-enabled payments in the United States, providing much-needed legal clarity around stablecoins. The bill passed with the support of 18 Democrats, marking the largest ever bipartisan majority on crypto legislation. Shirzad noted that if a few absent senators had been present, the tally could have reached as high as 70 votes in favor, signaling a two-thirds majority that bodes well for continued progress in the House and a broader transformation of the American payments landscape.

Shirzad drew a parallel between the current moment in crypto and the early days of the internet, emphasizing the potential of blockchain to revolutionize financial transfers. He argued that the US payment system, still largely built on 20th-century technology, is inefficient and that blockchain can deliver cross-border transactions at a fraction of the time and cost currently involved. “We’re on the verge of a payments revolution,” he noted, and stablecoins are just the first piece of that puzzle. While the stablecoin legislation provides regulatory clarity, Shirzad stressed the need for a broader framework around crypto market structure to unlock the full potential of crypto innovation.

For Coinbase and other corporations in the digital assets space, regulatory ambiguity has long been a barrier to innovation. However, with a clearer federal framework on the horizon, Coinbase expects a surge in R&D spending as companies feel more confident about deploying capital. Shirzad believes that there are already “investment dollars sitting out there ready to build the next generation of the financial system,” and those funds could now be unleashed thanks to legislative clarity. Despite differences between competing bills, such as the GENIUS Act and the House’s earlier Stable Act, Shirzad is optimistic that the broader bipartisan momentum will not be derailed. He views the market as approaching an inflection point, with Washington finally taking action to lay the groundwork for a financial system where blockchain powers the core.

Coinbase's policy chief recently announced that a blockchain-driven payments revolution is on the horizon. This revelation underscores the growing significance of blockchain technology in transforming traditional payment systems. The integration of blockchain into payment networks promises to expedite transaction settlements, providing businesses with swift access to funds. This capability is crucial for paying suppliers and reinvesting capital without delays, thereby enhancing operational efficiency.

The rapid settlement of transactions on blockchain networks is a key advantage for businesses. Stablecoins, which are digital currencies pegged to the value of a stable asset like the US dollar, play a pivotal role in this transformation. They enable businesses to settle transactions quickly and securely, reducing the time and costs associated with traditional payment methods. This shift towards blockchain-driven payments is not just about speed; it also enhances transparency and security, making it an attractive option for businesses looking to streamline their financial operations.

Coinbase, a leading cryptocurrency exchange, has been at the forefront of this technological shift. The company has been actively exploring new ways to integrate blockchain technology into its services. For instance, Coinbase Derivatives has partnered with Nodal Clear to accept USDC as collateral for U.S. futures trading, set to launch in 2026. This move is expected to enhance trading options and provide more flexibility for traders. Additionally, Coinbase has been piloting a new digital currency called JPMD in partnership with a major bank, further demonstrating its commitment to innovation in the payments sector.

The adoption of blockchain technology in payments is not limited to cryptocurrency exchanges. Traditional financial institutions are also recognizing the potential of blockchain to revolutionize their operations. The bank's piloting of JPMD in partnership with Coinbase is a testament to this trend. By leveraging blockchain technology, financial institutions can offer faster, more secure, and transparent payment services to their customers.

The integration of blockchain technology into payment systems is not without its challenges. Regulatory hurdles and technical complexities are among the obstacles that need to be overcome. However, the potential benefits of blockchain-driven payments are significant, and many industry players are optimistic about its future. As more businesses and financial institutions adopt blockchain technology, the payments revolution is expected to gain momentum, transforming the way transactions are conducted globally.