- A 3/4 Senate pushes with the stablecoin GENIUS Act.
- Bill gains bipartisan support with 16 Democrats voting yes.
- Revised GENIUS Act addresses Big Tech and national security.
On Monday night, the U.S. The GENIUS Act, which would set up stablecoin standards, received approval by the Senate by a vote of 66 to 32, a margin that represents approximately 3/4 support. A substantial stride forward in the regulation of cryptocurrency is represented by this action.
The GENIUS Act, or S. 1582, is about establishing standards for stablecoins, which are digital currencies that are tied to things like the U.S. dollar. The measure got beyond a procedural roadblock by getting the 60 votes it required to conclude discussion. This opened the door for a full floor vote.
Bipartisan Support Helps the GENIUS Act Move Forward
Sixteen Democrats and most Senate Republicans voted for the measure to go forward. Ruben Gallego from Arizona, Mark Warner from Virginia, Lisa Blunt Rochester from Pennsylvania, Kirsten Gillibrand from New York, and Angela Alsobrooks from Maryland are some of the most important Democrats who changed their votes.
The vote comes after a failed effort on May 8, when the measure lost by a vote of 48 to 49. At the time, Democrats were worried about President Donald Trump’s cryptocurrency businesses, such as his family’s links to World Liberty Financial, a stablecoin issuer.
After the first failure, talks led to a new draft of the GENIUS Act. The new measure has rules to deal with conflicts of interest, national security, and Big Tech’s role in stablecoins.
One new rule is that key officials in the executive branch can’t issue stablecoins while they are in office. But this rule doesn’t apply to the president and vice president.
Another change stops Big Tech firms from creating stablecoins unless they have permission from users to handle sensitive financial information. This is aimed at companies like Apple, Meta, and Amazon, who may use stablecoins to have more financial power.
Senator Kirsten Gillibrand, one of the earliest co-sponsors, argued that the bill protects consumers and stimulates fresh ideas. It helps the U.S. compete in the worldwide digital marketplace, she added.
GENIUS Act: The Bill That Might Bring Wall Street Into Crypto—If It Survives the Senate
Stablecoins make it easy to exchange digital assets and make payments across borders without using regular money. The GENIUS Act wants to provide issuers a legal framework, which might bring big banks to the industry.
Leaders in the industry think that the new law might bring billions of dollars into the crypto sector. potentially that there are clearer rules in place, big Wall Street firms who were wary before may potentially go into the stablecoin area.
The bill’s passage is a success for the crypto sector, which has been working for years to make stablecoins a common way to handle money. Coinbase, one of the biggest cryptocurrency exchanges, stepped up its campaign to make sure the measure passed.
Some Democrats are still at odds, even if things are getting better. SSenate Minority Leader Chuck Schumer and Minority Whip Dick Durbin both voted against pushing the legislation ahead, which suggests that the party is still anxious about it.
Senator Elizabeth Warren, who doesn’t like the idea very much, claimed that it doesn’t do enough to keep people safe from probable corruption and financial problems. She claimed it may make things worse for Trump’s bitcoin company to proceed with corruption.
The proposal was also opposed by two Republicans, Jerry Moran of Kansas and Rand Paul of Kentucky. Paul has said that he doesn’t like too many rules, but Moran’s exact reasons for not like them weren’t explained.
The Senate will now talk about the GENIUS Act and make any changes that may be needed. A final vote might happen soon, but some senators say it could not happen until after the Memorial Day break.
