Key Takeaways:
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- The U.S. Senate is in the final stages of debating the GENIUS Act, a bill aimed at regulating stablecoin issuers like Tether’s USDT and Circle’s USDC.
- Crypto industry groups, including the Blockchain Association and Crypto Council for Innovation, are urging lawmakers to avoid distractions from unrelated amendments, such as the Credit Card Competition Act.
- The GENIUS Act has bipartisan support and a 60-65% chance of becoming law this year, according to policy analysts, but it still faces hurdles in the House of Representatives.
- If passed, this would mark the first major piece of crypto legislation to clear the Senate, setting a precedent for stablecoin oversight in the U.S.
What Happened?
The U.S. Senate is nearing a final vote on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bill designed to regulate stablecoin issuers and provide a comprehensive framework for oversight. The bill has already cleared the Senate Banking Committee and an earlier floor vote with bipartisan support.
However, the debate is being complicated by unrelated amendments, including the Credit Card Competition Act, which aims to increase competition among card issuers. Over 50 amendments have been proposed, threatening to derail the stablecoin bill’s progress.
Crypto industry lobbyists, including leaders from the Blockchain Association, Crypto Council for Innovation, and DeFi Education Fund, issued a joint statement urging lawmakers to remain focused on the bill’s primary goal of stablecoin regulation.
Why It Matters?
The GENIUS Act represents a critical step toward establishing clear regulatory guidelines for stablecoins, which are widely used in the crypto industry as dollar-pegged tokens. A lack of regulation has raised concerns about financial stability, consumer protection, and systemic risks.
If passed, the bill would set a precedent for crypto legislation in the U.S., potentially paving the way for broader regulatory frameworks. However, distractions from unrelated amendments could delay or dilute the bill’s impact, undermining efforts to provide clarity for stablecoin issuers and users.
The bipartisan support for the GENIUS Act reflects growing recognition of the need for stablecoin oversight, but the bill still faces challenges in the House of Representatives, where lawmakers may propose their own changes.
What’s Next?
The Senate will continue debating the GENIUS Act and its proposed amendments this week. If the bill clears the Senate, it will move to the House of Representatives for further consideration.
Crypto industry stakeholders will closely monitor the debate, particularly the fate of unrelated amendments that could complicate the bill’s passage. Lobbyists are expected to intensify their efforts to keep the focus on stablecoin regulation and ensure the bill’s momentum is not derailed.
The outcome of the GENIUS Act will have significant implications for the crypto industry, shaping how stablecoins are regulated and potentially influencing broader crypto policy in the U.S.
