Major Turnaround! Dramatic Reversal in the Vote for the US Stablecoin Bill!

On the morning of May 20, Beijing time, the US Senate passed the motion to terminate debate on the GENIUS Act stablecoin bill with a vote of 66 in favor and 32 against. This development is significant as it clears a critical phase in the legislative process for this bill.

Previously, on May 8, the bill faced a disappointing defeat in the Senate's vote to terminate debate, with a result of 48:49, failing to reach the 60 votes needed to advance. This dramatic turnaround is primarily attributed to multiple revisions and improvements made to the bill text. The new version added numerous provisions related to anti-money laundering, consumer protection, and custodial requirements. It also imposes restrictions on tech giants issuing stablecoins, allowing them to enter the stablecoin market only after implementing robust financial risk controls and strict consumer data privacy protections.

Since being introduced by Senator Bill Hagerty on February 4, the GENIUS Act has garnered significant attention. The bill aims to establish clear federal rules for the stablecoin market, stipulating that stablecoin issuers must obtain licenses approved by federal or state regulatory agencies. All stablecoins must have sufficient reserves to back them, and issuers are required to conduct regular security audits while also limiting the use of algorithmic stablecoins. The Senate's passage of the motion to terminate debate means the bill will enter a full debate and amendment process, and will still need to go through a vote in the House of Representatives and presidential signing. If it ultimately succeeds in becoming law, it will establish the first federal-level regulatory framework for stablecoins in the United States, reshaping the landscape of the stablecoin market.