#GENIUSAct Why the Future of U.S. Crypto Laws Could Hinge on the GENIUS Act
The future of cryptocurrency regulation in the U.S. may rest on one critical piece of legislation—the GENIUS Act, a stablecoin-focused bill currently awaiting a Senate vote. According to prominent XRP advocate and attorney John E. Deaton, failure to pass this bill could delay meaningful crypto legislation until at least 2029.
Deaton, known for his legal involvement in the Ripple-SEC case, warned that if the Senate can’t move forward on a relatively straightforward bill like the GENIUS Act, more complex reforms—such as market structure regulation, crypto tax policy, or the Lummis-Gillibrand bill—stand little chance in the near term.
What Is the GENIUS Act?
Spearheaded by Senator Bill Hagerty, the GENIUS Act seeks to create a legal framework for stablecoin issuance in the U.S. It emphasizes consumer safety, transparency, and dollar-backed innovation. Hagerty stated in a CNBC interview that the bill would provide much-needed regulatory clarity and help bring crypto innovation back to the U.S., which has seen a talent exodus due to regulatory uncertainty.
Industry Voices Are Speaking Up
Support for the bill is growing across the digital asset space. Faryar Shirzad, Chief Policy Officer at Coinbase, called stablecoin legislation a "national priority" and compared the current shift to the disruptive rise of money market funds in the 1980s. Shirzad believes stablecoins could pressure outdated financial systems, but ultimately strengthen the U.S. dollar's global role and position the U.S. as a leader in financial innovation.
Political Challenges Persist
Despite bipartisan support, the bill still faces resistance. Critics like Senator Elizabeth Warren argue that the bill could reduce oversight and pose new financial risks. Deaton also pointed out a key limitation: the current bill would prevent stablecoin holders from earning yields, making it less attractive and potentially reducing adoption. He also highlighted resistance from traditional banking institutions, stating bluntly: “The bank lobby is real.”
What’s at Stake?
If the GENIUS Act fails, the ripple effect could be significant. Broader crypto policy—including reforms related to crypto taxation, decentralized finance, and digital asset classification—may be postponed until the next administration takes office. This would leave the industry in a continued state of uncertainty, discouraging innovation and pushing more crypto businesses overseas.
As the Senate prepares to vote, the crypto community watches closely. The GENIUS Act isn’t just about stablecoins—it could set the tone for the entire future of U.S. crypto regulation.
