Senate Majority Leader John Thune (Republican – SD) has expressed willingness to compromise with Democrats to advance the GENIUS Act before the August recess, amid pressure from political controversies. Could this be a turning point for the stablecoin legal framework in the U.S.? Let's analyze in detail.


Thune Opens the Door: Cooperation to Accelerate the GENIUS Act

Thune stated in an interview with the press at Congress on Monday that he is willing to adjust the #GENIUSAct on the Senate floor: “There can certainly be changes on the floor, I’m waiting to see what the Democrats ask for.” This statement marks a shift after he expedited the process on Sunday, expecting a vote as early as this Thursday. However, the plan was hindered when 9 Democratic Senators, including 4 who previously supported it in committee, issued a statement of opposition, calling for stronger regulations on anti-money laundering, foreign issuers, national security, financial safety, and accountability.


Context and Importance of the GENIUS Act

With 53 seats in the Senate, Republicans need at least 7 Democratic votes to overcome the final hurdles. The GENIUS Act aims to create the first federal legal framework for stablecoins – a type of cryptocurrency pegged to the USD, backed by cash or stable assets, unlike volatile Bitcoin. The bill allows both banks and non-bank entities to issue stablecoins if they maintain a 1:1 reserve backed by high-quality liquid assets. Meanwhile, the STABLE Act (House) proposes stricter reserve requirements. If passed, the GENIUS Act will fill the legal gap as the stablecoin market cap has exceeded $240 billion (according to CoinGecko).


Impact on the Crypto Market

This event brings many signals:



  • Increasing legitimacy: If successful, the GENIUS Act could promote stablecoins like USD1 (7th in the world) and support the market, similar to Bitcoin ETFs (which attracted $1.8 billion last week).


  • Short-term volatility: Delays from political controversies could affect sentiment, especially as Bitcoin and Ethereum are sensitive.


  • Legal competition: Compared with the STABLE Act, the voting outcome will shape the regulatory framework, impacting projects like Tether AI.



Future Prospects

Despite facing obstacles, the GENIUS Act still has a chance to pass before the August recess if Thune reaches an agreement with the Democrats. With crypto fund inflows reaching $3.4 billion last week and a forecast of accumulating $330 billion into Bitcoin by 2029 (Bernstein), the stablecoin legal framework could shape digital finance in the next 2-3 years.


Conclusion: How Will the GENIUS Act Change Stablecoins?

Thune opens the door to cooperation with Democrats to push the GENIUS Act, compromising under pressure from 9 opposing Senators. This bill, if passed, will create a legal framework for stablecoins with a market cap of $240 billion, but needs to overcome political hurdles. Investors should keep a close watch to anticipate the impact on the promising crypto market.


Risk warning: Crypto investments carry high risks due to price volatility and legal uncertainties. Please consider carefully before participating. #anhbacong