Historic Turning Point For Stablecoins: Senate To Vote On Major Legislation Soon

The United States appears to be gearing up for a historic development in the crypto sector. The Senate will soon debate the GENIUS Act, a proposal that would create a growth-friendly framework for stablecoins like USDC and USDT must create.

Political support for new stablecoin rules

The “Guiding and Establishing National Innovation for US Stablecoins” (GENIUS) Act has support from both Republicans and Democrats. Senator Bill Hagerty (R-Tennessee) believes that the Senate will “make history” by passing this bill. Democratic Senator Kirsten Gillibrand (R-New York) also supports the bill, although she is more cautious. She emphasizes the importance of legislation that both protects consumers and allows for innovation. She says: “Stablecoins play a critical role in the global economy. Legislation that protects consumers and enables responsible innovation is essential. This is a true bipartisan effort and I am optimistic that we can pass this bill soon.”

Concerns about stablecoin issuers

There are still hurdles to overcome before the bill can pass. During negotiations, some Democrats raised concerns about who would be allowed to issue stablecoins. The latest version of the bill bans large public companies like Meta from acting as stablecoin issuers, an attempt to prevent influential tech giants from gaining too much power. On the other hand, consumer groups warn that private companies like Elon Musk’s X platform could potentially act as issuers.

Crucial vote in the Senate

A key vote will take place on Monday, requiring at least 60 votes to formally debate the bill. This will also require some Democrats to be convinced. If successful, the Senate can continue to debate and make changes before final approval. Previous versions of the GENIUS Act passed with considerable support in the Senate Banking Committee. Despite some Democratic senators becoming more cautious since then, there are now more crypto-friendly Democrats in the Senate than in the previous term, increasing the chances of approval.

Joint effort with the House of Representatives

The House of Representatives is also working on its own version of the stablecoin bill. Ultimately, both versions will need to be merged into one final bill, after which it can be submitted to President Donald Trump for signing. It seems like the US crypto industry is getting a jump into the future.

Frequently Asked Questions

What exactly does the GENIUS Act entail?
The GENIUS Act focuses on creating a supportive framework for stablecoins in the United States, allowing for the growth of digital currencies to occur in a well-regulated manner without stifling innovation.

What are the main obstacles to the implementation of the law?
A major challenge is the discussion about who will be allowed to issue stablecoins. There are concerns about the influence of large technology companies and whether private parties are eligible as issuers.

What's the next step after the Senate vote?
After the vote, the House of Representatives must finalize its own version of the legislation, after which the two versions will be merged into one final bill for the president to sign.