#CryptoNewss A new version of the GENIUS Act (S. 1582) has been published in the U.S. Senate, significantly expanding the jurisdiction of American financial regulation concerning foreign stablecoin issuers. According to the document, companies like Tether will be required to comply with local laws if they provide services to users from the U.S.—regardless of the country of registration.@Cryptoland_8
Previously, Tether's management had long avoided regulation, citing a lack of direct interaction with U.S. jurisdictions. The new bill eliminates this uncertainty by implementing a principle of extraterritoriality: all stablecoin providers serving U.S. residents automatically fall under local financial requirements.
At the same time, #GENIUSAct expands the definition of digital providers, including not only centralized exchanges and custodial services but also developers, validators, and self-custody wallet developers. All participants in decentralized protocols may be required to comply with the Bank Secrecy Act and anti-money laundering regulations (#aml ). However, this decision threatens the fundamental principles of #defi —autonomy and decentralization.$USDC
The bill also introduces a safe harbor mechanism, granting the U.S. Secretary of the Treasury limited authority to exempt small or experimental projects from certain requirements. However, in emergency situations, the Department gains the ability to intervene unilaterally, which has already drawn criticism from human rights advocates and tech companies.$USDP
According to insights from the Senate, the new version reflects behind-the-scenes negotiations of recent weeks. The vote on the start of official discussions did not take place because some senators did not have time to familiarize themselves with the text of the document.
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