Senate Set to Reconsider GENIUS Act for Stablecoins
Senators plan another vote on Monday evening to move the GENIUS Act forward. This法案 aims to create the first U.S. rules for stablecoins.
Following a failed attempt earlier this month due to Democratic objections, the bill has been revised. The updated version aims to restrict Big Tech companies, like Meta, from issuing stablecoins without special permission.
However, some key progressives, including Sen. Elizabeth Warren, are still not convinced.They worry the bill could enable crypto-related corruption linked to the Trump family through World Liberty Financial’s USD1 stablecoin.
The GENIUS Act would demand that stablecoin issuers hold reserves in safe assets, such as Treasury bills, and follow anti-money-laundering laws. It also ensures consumer priority in case of bankruptcy.
Stablecoins, like Tether’s USDT and Circle’s USDC, support much of the $3.3 trillion crypto trading market. While some Democrats fear these coins might let tech giants into the banking sector, crypto supporters see the bill as a step toward modernizing U.S.finance.
Industry groups argue that not passing the bill could delay clearer crypto regulations. While the House might approve it more easily, Senate passage could still meet resistance due to scrutiny of former President Trump’s financial ties to crypto.
