GENIUSBill

#GENIUSBill BREAKING: 🇺🇸 Senate officially passes 'Genius Act' crypto stablecoin bill.

The U.S. Senate voted on Wednesday to advance the Guiding and Establishing National Innovation for U.S. Stablecoins, known as the GENIUS Act, setting it up for a final floor vote in the coming days.

The legislation aims to regulate the roughly $238 billion stablecoin market, per CoinDesk data, creating a clearer framework for banks, companies and other entities to issue the digital currencies.

The bill has bipartisan support, as well as criticism from both parties, making its fate in the Senate uncertain.

Here’s what to know about what’s included in the bill and how it could impact investors — even those who don’t hold crypto.

What is a stablecoin?

A stablecoin is a type of cryptocurrency that is pegged to another asset, typically the U.S. dollar, which makes it less volatile than other cryptocurrencies tend to be.

The currency is used in a number of ways, including for payments and futures trading. Since they’re also more predictable than regular crypto tokens, traders also use stablecoins “to sit out times of volatility or market downturns,” says Nic Puckrin, a crypto analyst, investor and founder of The Coin Bureau.

“Stablecoins are also being used increasingly in emerging markets, like Latin America and Sub-Saharan Africa, to hedge against monetary instability, as well as for cheap cross-border payments,” he adds.

“The use cases are very broad, and new ones are emerging all the time.″

How will the GENIUS Act change how stablecoins are used?

Ultimately, the GENIUS Act could make stablecoins more mainstream by bolstering trust in the currency and encouraging more competition in the market, Puckrin says.

“Right now, [the stablecoin market] is, for all intents and purposes, a duopoly. The market is nearly entirely dominated by Circle’s USDC and Tether’s USDT,” Puckrin says.

Since the bill will create a clear pathway for banks and other entities to begin issuing stablecoins, “we’ll likely see a flood of them rush into the market at the start,” he says.

Big banks are gearing up to create their own coins. And while they may not all be successful, Puckrin says they will give consumers more options to find a stablecoin and issuer that works best for their needs.

What do GENIUS Act supporters say?

Proponents say it will help safeguard investors and regulate the stablecoin market by ensuring issuers have the reserves needed to give stablecoins their value.

“If we fail to act now, not only will these benefits slip away — we will also fall behind in global competitiveness,” Sen. Bill Hagerty (R-Tenn.), who introduced the bill, said in the Senate on Wednesday. “Without a regulatory framework, stablecoin innovation will proliferate overseas — not in America!”

Puckrin agrees stablecoin regulation could be a boon for the U.S. and its position in the global economy.

“Congress has also realized that instead of threatening the U.S. dollar, stablecoins can help cement its global dominance, because 99% of stablecoins are pegged to USD,” he says. “With the dollar struggling to maintain its role in the global economy, the GENIUS Act could just be the thing that saves it.”

Some supporters acknowledge the bill isn’t perfect, but think it’s better than not having regulation on stablecoins at all.

“The general outlook is that [the bill] will do better than anything that is currently happening,” says Bezalel Eithan Raviv, CEO of blockchain security firm Lionsgate Network.

“It’s a step in the right direction for everyone. There are ways to make it better. There are ways to make everything better. But this is the first one. Let’s give it a try, and it will ripple in many ways.”

What do GENIUS Act detractors say?

Critics of the GENIUS Act argue it compromises crypto’s decentralization and could enable corruption, such as officials favoring specific stablecoins under new regulations.

“We need guardrails that ensure that government officials aren’t openly asking people to buy their coins in order to increase their personal profit or their family’s profit,” Sen. Jeff Merkley (D-Ore), who opposed the current version of the bill, said during Wednesday’s session.

“Where are those guardrails in this bill? They’re completely, totally absent.”

Some critics also say the bill gives too many entities the ability to create new stablecoins which could make enforcement of the regulation standards more difficult.

“As long as issuers are clearly following the rules and regulations, more competition in the stablecoin landscape is both welcome and necessary,” Puckrin says.

What impacts could the bill have beyond crypto?

During the GENIUS Act’s passage through the House, some members sought to attach amendments, including proposals from the Credit Card Competition Act. The latter, introduced in 2023 but previously stalled, aimed to boost credit card payment competition by requiring issuers to allow more than two networks (beyond mainly Visa and Mastercard) to process transactions.

Some legislators saw enough similarities between the credit card and stablecoin marketplaces to justify adding the CCCA to the GENIUS Act, but Senate Majority Leader John Thune (R-S.D.) nixed that plan, fearing the CCCA’s inclusion could cost votes in favor of the larger bill.

Still, the GENIUS act could impact retailers outside of crypto, Puckrin says.

“We’ll likely see stablecoins increasingly adopted as a digital alternative to the U.S. dollar, so banks, fintechs and merchants will be forced to offer stablecoin payment options,” he says. “Eventually, payment networks like Visa and Mastercard will have to do so as well, which will lead to lower fees. The CCCA proposals are an inevitable evolution of the GENIUS Act. It will just take a little longer if it isn’t written into law.”

Four leading U.S. crypto advocacy organizations are urging the Senate to swiftly pass the GENIUS bill, which aims to establish clear regulations for stablecoins in the United States. They warn that political infighting over unrelated amendments, particularly those regarding credit card fees, could delay or derail the legislation.

🧩 What Is the GENIUS Bill?
The GENIUS Act (short for Governance and Innovation for U.S. Stablecoins) is designed to create a comprehensive regulatory framework for stablecoins—cryptocurrencies pegged to fiat currencies like the U.S. dollar. The bill already passed a procedural vote in the Senate on May 19 and is awaiting approval in the House of Representatives.

📣 Crypto Lobby: Don’t Derail the Bill
Organizations such as the Blockchain Association, Crypto Council for Innovation, Digital Chamber, and DeFi Education Fund issued a joint statement on June 2, urging lawmakers to pass the bill without unrelated additions.
They emphasized the importance of staying focused on the bill’s original goal: to deliver clear and targeted oversight for stablecoins, rather than complicating it with unrelated political battles.

💳 Controversy: Credit Cards vs. Crypto?
Tensions rose when Senators Dick Durbin and Roger Marshall proposed attaching a credit card competition bill to GENIUS. This legislation seeks to regulate merchant processing fees and increase competition among major payment networks like Visa, Mastercard, and American Express.
The proposal met strong resistance from banks and card networks, who view it as government overreach. Meanwhile, crypto supporters warn that such amendments distract from the original purpose and could jeopardize the entire bill.

🧨 Other Controversial Additions?
According to journalist Eleanor Terrett, additional proposed amendments include:
🔹 Restrictions on stablecoin issuers with Chinese or foreign ownership

🔹 Disclosure requirements for government officials with stablecoin holdings

🔹 Guardrails against influence from crypto projects linked to the Trump family

🔹 Updates to anti-money laundering and Bank Secrecy Act regulations
All of these proposals threaten to delay final voting, which may now be pushed back to June 9 due to procedural complications.

🔍 Hope Remains, But Time Is Ticking
Despite rising political tension, crypto advocates remain hopeful that the GENIUS bill will pass in time and finally bring regulatory clarity to the U.S. stablecoin market. They argue the framework is crucial for consumer protection, innovation, and global competitiveness in the digital asset space.

#GENIUSBill , #stablecoin , #crypto , #Regulation , #CryptoInnovation

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The U.S. Senate is currently in the midst of intense discussions. On the agenda is the GENIUS Act – an ambitious bill that has evolved from a low-profile proposal into a major political issue. Senators are now reviewing more than 60 proposed amendments, indicating the bill's significant impact and wide interest from both parties.

🔹 Amendment Marathon: Bipartisan Compromise Is Key
According to respected journalist Eleanor Terrett on X (formerly Twitter), both Republicans and Democrats are working to shorten the extensive list of changes. The more than 60 amendments are now at the heart of complex negotiations. If lawmakers fail to reach an agreement soon, the bill’s path forward could be delayed until next week due to procedural hurdles.
However, the goal is to avoid such delays. Lawmakers know that swift approval could open the door for other key initiatives. That’s why they're now racing against time.

🔹 A Bill Once Overlooked Is Now Center Stage
Until recently, the GENIUS Act received little public attention. But with mounting negotiations, it’s clear this legislation is significant enough to garner strong bipartisan interest.
While the specific content of the proposed amendments has not been disclosed, the sheer number suggests that the bill touches on critical issues. A bipartisan agreement is essential – without it, the Senate may stall in extended debates.

🔹 Is Crypto Quietly Driving Momentum?
Though not openly discussed, the growing support for crypto-related initiatives – such as the recent Bitcoin ETF application from Truth Social – may be part of the reason the GENIUS Act is gaining momentum. This legislation could play a vital role in shaping the future regulatory landscape.
Without progress, however, the bill risks getting lost in procedural gridlock, potentially delaying other legislative priorities.

🔹 The Clock Is Ticking. Tensions Are Rising.
According to Terrett, things on Capitol Hill can change quickly – if lawmakers strike a deal, everything could speed up within hours. Otherwise, delays are inevitable. Behind closed doors, congressional staffers and lawmakers are likely working overtime to find a middle ground.
The GENIUS Act may soon become a key legislative milestone for the U.S., especially in the realms of technology and finance. The outcome of these negotiations will not only influence the bill’s fate, but also determine how fast the U.S. can adapt its laws to meet the challenges of tomorrow.

#GENIUSBill , #USGovernment , #USPolitics , #Stablecoins , #BTC

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“