#MarketPullback The U.S. stablecoin regulatory landscape is currently in flux as the Senate deliberates the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This legislation aims to establish a federal framework for stablecoin issuers, mandating 100% reserve backing with U.S. dollars and short-term treasuries, and limiting issuance to federally approved entities .

Initially, the bill garnered bipartisan support, passing the Senate Banking Committee with an 18–6 vote . However, recent developments have seen nine Senate Democrats withdraw their backing, citing concerns over insufficient anti-money laundering measures, national security risks, and inadequate oversight of foreign issuers like Tether . This shift threatens the bill's advancement, as it now lacks