The “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act, aiming to regulate stablecoin issuers, is poised for Senate debate and potential passage next week. Sponsored by Senator Hagerty (R-TN) and supported by Senator Gillibrand (D-NY), the bill seeks to establish a regulatory framework for payment stablecoins like USDC and USDT, crucial for crypto trading.
Recent revisions address Democratic concerns regarding consumer protection and national security. The updated bill explicitly excludes large public companies like Meta as issuers, although private entities remain eligible, raising concerns among consumer advocates. While Senator Hagerty expresses confidence in the bill’s passage, Senator Gillibrand’s statement reflects a more cautious optimism, acknowledging the challenges faced during negotiations.
The bill’s path has been turbulent. A previous cloture vote failed, necessitating a second vote scheduled for Monday, requiring 60 votes to proceed to formal debate. Further debate and potential amendments may follow before a final vote. Democratic opposition stemmed from concerns about potential abuse, corporate involvement, and President Trump’s crypto interests, particularly World Liberty Financial’s USD1 stablecoin.
Despite initial bipartisan support in the Senate Banking Committee, subsequent objections emerged. However, the current Senate session boasts more crypto-friendly Democrats compared to the previous one, where crypto legislation stalled. The House of Representatives is also developing its own version, requiring reconciliation with the Senate’s bill before presidential approval.
Representative French Hill (R-AR), Chairman of the House Financial Services Committee, openly acknowledged that President Trump’s crypto involvement has complicated inter-party negotiations. The bill’s passage remains uncertain, hinging on securing sufficient Democratic support amidst ongoing concerns and political complexities.
