The GENIUS Act’s future remains unclear. After a failed House procedural vote (196–223), efforts are ongoing for a rescheduled session. The Senate passed its version (68–30), and reconciliation with the STABLE Act is in progress.
No final law yet, but if passed, the GENIUS Act could make the U.S. the global leader in digital assets, especially stablecoins, by enforcing 1:1 reserve backing with U.S. currency or treasuries, ensuring consumer protection, and boosting trust after collapses like Terra Luna.
Stablecoin market cap could grow from $232B to trillions, benefiting U.S. dollar dominance. Banks, fintechs, and even tech giants like Meta could issue stablecoins, cutting remittance costs from 6% to under 1% and enabling instant settlements. It could also increase U.S. treasury demand, stabilizing financial markets while squeezing out smaller issuers.
Globally, this would expand U.S. influence in places like Latin America and Africa, while non-compliant offshore issuers lose ground.
But the Act carries real risks: loopholes like conflict-of-interest exemptions let officials profit through prior investments (Trump’s ventures included). Smaller issuers under $10B can choose state regulation, risking patchy enforcement. Allowing corporations to issue stablecoins poses privacy and monopoly concerns with no clear limits.
Banning interest-bearing stablecoins might push yield-seekers offshore. Plus, sanctions could be skirted through intermediaries. Regulatory details are left to agencies like the Fed, leaving open-ended rules that smart players could exploit.
So while the GENIUS Act could change everything, its blind spots may create new problems just as big as the ones it solves.