Senate to Revote on GENIUS Act for Stablecoins
Senators are set to reconsider the GENIUS Act on Monday evening. This legislative move aims to introduce the first U.S. rules governing stablecoins. this comes after it failed in a previous vote due to Democratic concerns about possible loopholes.
The updated bill aims to restrict big tech companies like Meta from issuing stablecoins without explicit approval. Yet, some key progressives, notably Sen. Elizabeth Warren, remain dissatisfied. Warren worries the bill still allows for crypto-related corruption linked to the Trump family. World Liberty Financial, linked to the Trumps, has already launched a dollar-backed stablecoin named USD1.
The GENIUS Act stipulates that stablecoin issuers must keep reserves in secure assets like Treasury bills.They must also follow anti-money-laundering laws and prioritize consumers in case of bankruptcy.
Stablecoins like Tether’s USDT and Circle’s USDC form a vital part of the $3.3 trillion crypto trading market. While some Democrats fear stablecoins could let tech giants enter banking, crypto supporters view the bill as crucial for updating the U.S. financial infrastructure.
Industry experts believe failing to pass the bill could further delay clear crypto regulations. Even though the bill may pass more easily in the House, broader crypto laws might meet more resistance due to increasing scrutiny of former President Trump’s ties to the crypto sector.
