Senate to Vote on Revised GENIUS Act, Targeting Big Tech Stablecoins

The US Senate is set to vote next week on a revised version of the GENIUS Act, a bill focused on stablecoins that has been amended to address concerns raised by Democratic lawmakers. The original bill faced opposition last week when several Democratic senators withdrew their support, citing inadequate anti-money laundering provisions, insufficient oversight for foreign stablecoin issuers, and a lack of enforcement mechanisms.

In response to these concerns, the bill's sponsors have introduced key amendments to enhance regulatory controls and bolster national security protections. The updated bill includes strengthened clauses around financial integrity, consumer protection, and ethical standards. It also introduces language aimed at curbing the influence of large technology companies and foreign entities in the digital currency space.

One of the most significant changes is a provision that prohibits non-financial, publicly traded companies from issuing stablecoins unless they meet strict conditions. These conditions include clear frameworks for risk management, data privacy, and fair business conduct. This amendment is designed to maintain the separation between banking and commerce, effectively limiting the ability of Big Tech companies like Meta, Google, Amazon, and Microsoft to launch digital currencies that could evade regulatory scrutiny.

This revision comes at a time when reports indicate that Meta is in early discussions with crypto firms about enabling cross-border stablecoin payments on its platforms. Additionally, the revised bill clarifies that stablecoins do not carry federal insurance protections, which aims to reduce the risk of consumer confusion and financial fraud. These changes are intended to establish clear legal boundaries while preserving the role of traditional financial institutions.

As the Senate prepares for the vote, crypto advocacy groups have intensified their efforts to push the legislation forward. Stand With Crypto, a Coinbase-backed advocacy group, has launched a campaign encouraging constituents to contact their senators in support of the bill. The Blockchain Association has also expressed support, stating that passing the bill would bring the industry one step closer to a bipartisan framework for stablecoins. Coinbase CEO Brian Armstrong has joined the push, urging lawmakers to create clear rules for crypto in America, noting that 52 million Americans have used crypto and are seeking regulatory clarity.