The U.S. Senate plans to potentially pass the (National Innovation Stablecoin Guidance and Establishment Act) (GENIUS Act) as early as May 26, aiming to establish a federal regulatory framework for stablecoins. Previously, Democrats halted its advancement on May 8 due to concerns that the bill might allow former President Trump and his family to benefit from cryptocurrency projects. To reach a consensus, provisions targeting the Trump family have been removed from the bill.
Background and Controversy
• Bill Objective: The GENIUS Act aims to establish a federal regulatory framework for stablecoins, ensuring their safety and stability while promoting innovation.
• Democratic Concerns: Democrats had been worried that the bill might allow Trump and his family to benefit from cryptocurrency projects, particularly projects like meme coins that the Trump family might launch.
• Provision Removal: To reach a consensus, provisions related to the Trump family have been removed from the bill.
Political Maneuvering and Bill Revision
• Democratic Position: Democratic Senator Kirsten Gillibrand stated that the bill's language has been revised to remove provisions related to Trump's cryptocurrency projects, such as meme coins.
• Bill Improvements: Gillibrand emphasized that the revised bill has improvements in areas such as consumer protection, focusing not on Trump's ethical issues but on regulating the stablecoin sector.
• Republican Response: Republicans believe that Democrats are attempting to politicize the bill by linking potential interests of the Trump family to the content of the bill, motivated by political reasons rather than actual issues.
Future Prospects
• Bill Passage Expectation: Despite the controversy, the Senate still plans to vote on the GENIUS Act on May 26, with expectations that the bill will pass.
• Industry Impact: Once passed, the bill will provide a clear regulatory framework for stablecoins, helping to standardize and promote healthy development in the stablecoin market.
• Ongoing Attention: The final passage and implementation of the bill still require ongoing attention, especially regarding its impact on the stablecoin market and the cryptocurrency industry.
The advancement and revision of the U.S. stablecoin bill reflects the complex relationship between political maneuvering and industry regulation. Although provisions targeting the Trump family have been removed, the core goal of the bill remains to establish a safe and transparent regulatory framework for stablecoins.