US Senate Moves Closer to Passing GENIUS Act for Stablecoin Regulation

The US Senate has scheduled a final vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act for Tuesday, June 17. This legislation aims to establish a comprehensive regulatory framework for stablecoins, a type of cryptocurrency pegged to the value of a fiat currency, such as the US dollar. The bill has garnered significant attention as it nears potential passage, following a procedural vote carried out by the US Senate on Thursday, June 12.

The GENIUS Act seeks to introduce a regulatory landscape for stablecoins, a milestone for the growing industry. The bill's advancement comes after months of debate and negotiations, with several key procedural votes scheduled to ensure its passage. The Senate's vote to advance the GENIUS Act with a 68-30 margin virtually guarantees its final passage, which is expected to take place on June 17. This final vote will be the culmination of extensive legislative efforts to address the regulatory challenges posed by stablecoins.

Majority Leader John Thune called for members of Congress to vote to pass the bill, highlighting that the GENIUS Act will assist in making cryptocurrency a common part of everyday life. Thune further stated that Congress had more work to do on digital assets, referring to a separate market structure bill working its way through the House. Regarding the bill mentioned by Thune, two House committees voted on Tuesday to move forward with the CLARITY Act, clearing the way for a full floor vote soon.

Despite the celebration behind getting the GENIUS Act through the final approval, Senator Elizabeth Warren of Massachusetts took to the Senate floor to say there were “serious issues” with the GENIUS Act. Warren raised concerns that the chamber did not tackle the issue by not voting on some bipartisan changes. She also echoed questions from many Democrats about Trump’s links to his family-backed crypto platform World Liberty Financial and accusations that supporters who hold his meme coin will be treated to dinner and have access to the president. Warren stated that Trump’s crypto business allows him to easily trade presidential favors like tariff breaks, pardons, and government jobs for hundreds of millions, maybe even billions, from foreign countries, wealthy individuals, and big companies. Therefore, according to her, by approving the GENIUS Act, the Senate will support this corruption and help it grow. Warren added that the GENIUS Act has many gaps and lacks strong protection, consumer protection security, and financial health.

While many Democrats voted to invoke cloture, some still ask Republicans to consider amending the GENIUS Act. Still, it is unclear whether the bill will have the support in the chamber, where Republicans have a slim majority, to pass. The GENIUS Act has seen shifts in support, with Senators John Hickenlooper and Andy Kim recently endorsing the bill, while Senator Lisa Blunt Rochester withdrew her support. The bill's progress has been facilitated by the support of 18 Democrats who voted alongside almost every Republican to end the debate on the updated version of the GENIUS Act. This bipartisan support is indicative of the growing consensus on the need for regulatory clarity in the stablecoin market.

The passage of the GENIUS Act is expected to have far-reaching implications for the cryptocurrency industry. It will provide a regulatory framework for stablecoins, which are digital assets pegged to the value of a fiat currency, such as the US dollar. This framework will help to address issues related to transparency, consumer protection, and financial stability. The bill's passage is also likely to encourage further innovation in the stablecoin market, as issuers will have greater clarity on the regulatory requirements they need to meet. The GENIUS Act's progress through the Senate highlights the growing recognition of the importance of stablecoins in the financial system. Stablecoins have gained popularity as a means of facilitating transactions and as a store of value in the cryptocurrency market. However, their lack of regulatory oversight has raised concerns about their potential impact on financial stability. The GENIUS Act aims to address these concerns by providing a clear regulatory framework for stablecoin issuers and ensuring that they operate in a transparent and accountable manner.

Analysts have pointed out the US could become a leader in regulating digital currencies worldwide if the law passes. Based on their argument, this important federal guideline might set new standards for regulators checking other cryptocurrencies. The Senate's vote to advance the GENIUS Act is a significant development in the ongoing efforts to regulate the cryptocurrency industry. The bill's passage will mark a major milestone in the regulatory landscape for stablecoins and is expected to have a positive impact on the industry's growth and stability. As the final vote approaches, all eyes will be on the Senate to see if the GENIUS Act will become law, providing much-needed regulatory clarity for the stablecoin market.