The U.S. Senate is preparing for a crucial decision on the future of stablecoin regulation. On Monday, May 19, lawmakers will vote to end debate on the GENIUS Act, a critical step that could pave the way for comprehensive legislation on stablecoins.
After months of delays, this vote is seen as a turning point that could finally align financial innovation with regulatory oversight in the United States.
🔐 What does the closure vote mean?
As journalist Eleanor Terrett highlighted, Senate Majority Leader John Thune officially moved to invoke closure on the GENIUS Act, meaning the Senate is ready to move forward with the bill for a final vote.
Behind the scenes, a bipartisan amendment is being drafted to broaden the bill's appeal. Key elements include:
🔹 Stricter rules for tech companies operating in financial services
🔹 Stronger protections for consumers
🔹 Oversight over high-profile individuals, such as Elon Musk
🔹 Safeguards against FDIC misuse
🔹 Clearer bankruptcy protocols
⚖ What the GENIUS Act proposes
Introduced by Senator Bill Hagerty, the GENIUS Act aims to create a clear regulatory framework for USD-backed stablecoins.
Under the bill:
🔹 Large issuers with over $10 billion in assets would be regulated by the Federal Reserve
🔹 Smaller issuers would be under state-level supervision
🔹 All stablecoins must be fully backed by cash or U.S. Treasury bonds.
🔹 Transparency, liquidity, and trust are core pillars
The bill also promotes financial inclusion and seeks to help the U.S. dollar maintain its global dominance in the digital age.
🔃 Pressure increases for cryptocurrency regulation
This vote comes just as the House of Representatives passed the STABLE Act, a similar legislation focused on regulating USD-backed stablecoins like USDT and USDC.
Advocates argue that these laws will bring order and accountability to a rapidly growing financial sector. Congressman Dan Meuser and others say that transparency and consumer protection are crucial to maintaining U.S. leadership in fintech.
📊 What's next?
If the Senate votes in favor of the closure, the GENIUS Act will advance to final legislative consideration. Together with the STABLE Act, it could form a unified regulatory framework for stablecoins and inject much-awaited clarity into a key part of the crypto ecosystem.
In an era where stablecoins are becoming integral to both global trade and daily transactions, the GENIUS Act could be a milestone for ensuring responsible innovation.
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