The Mystery of the GENIUS Act: Opportunity or Political Move with Stablecoins in the U.S.?
A political showdown is heating up in the U.S. Senate as the Republican Party (GOP) is determined to bring the GENIUS Act – the first bill on stablecoin regulation – to a vote on Thursday, despite increasing opposition from both the Democratic Party and a segment of key GOP members. Is this an effort to promote crypto policy, or a strategic move preparing for the 2026 midterm elections?
GENIUS Act – The First Bill for Stablecoins in the U.S.
The full name of the bill is the Guiding and Establishing National Innovation for U.S. Stablecoins Act, designed to establish the first federal legal framework for USD-pegged stablecoins. Key contents include licensing requirements, asset reserve backing, and transparency of information for stablecoin issuers in the U.S.
The GENIUS Act previously passed the Senate Banking Committee with bipartisan support in March. However, things became chaotic after a new draft of the bill was leaked without going through an official meeting, causing many senators – particularly from the Democratic Party – to express outrage over not being informed about significant changes.
Internal Divisions, Democrats Strongly Oppose
There are currently at least 9 Democratic senators and 3 Republican senators voicing their opposition. Notable names include Rand Paul (Kentucky), Josh Hawley (Missouri), and John Kennedy (Louisiana) – all important voices within the GOP.
