Revised Genius Stablecoin Bill Goes to Senate, Shuts Big Tech Out of Token Issuance

The U.S. Senate is set to vote next week on a revised version of the GENIUS Act, a stablecoin-focused bill that was updated in response to concerns from Democratic lawmakers. The bill ran into problems last week when several Democratic representatives withdrew their support, citing shortcomings in anti-money laundering provisions, weak oversight of foreign stablecoin issuers, and a lack of enforcement tools.

In response, the bill's sponsors introduced key amendments to strengthen regulatory controls and ensure national security protections.

Key changes in the GENIUS Act

The updated version of the law places greater emphasis on financial integrity, consumer protection, and ethical standards. It also introduces language targeting the influence of large tech companies and foreign entities in the digital currency space. One of the most significant changes is a provision that prohibits non-financial, publicly traded companies from issuing stablecoins unless they meet strict requirements. These requirements include clear frameworks for risk management, data privacy, and fair trade conduct.

The change is intended to “preserve the separation between banking and commerce,” which would limit the financial ambitions of big tech companies like Meta, Google, Amazon and Microsoft, preventing them from launching digital currencies that could circumvent regular oversight. It comes as Meta has been in talks with crypto companies about enabling cross-border stablecoin payments on their platforms.

Additionally, the revised bill clarifies that stablecoins do not have federal insurance protection, which increases the risk of consumer confusion and financial fraud reduces. All these adjustments are intended to set clear legal boundaries while preserving the role of traditional financial institutions.

Crypto Industry Mobilizes for the Vote

Ahead of next week's vote, crypto advocates have stepped up their efforts to push through the legislation. Stand With Crypto, a Coinbase-backed advocacy group, has launched a campaign encouraging voters to email their senators in support of the bill. Another organization, The Blockchain Association, is backing the call, saying that advancing the bill “would bring us one step closer to creating a bipartisan framework for stablecoins.”

Coinbase CEO Brian Armstrong has joined the effort, calling on lawmakers to “create clear regulations for crypto in America.” He added that “52 million Americans have used crypto and want regulatory clarity.”

Frequently Asked Questions

What does the GENIUS Act entail?
The GENIUS Act is a law aimed at regulating stablecoins with an emphasis on financial integrity and consumer protection.

Why have some Democratic lawmakers withdrawn their support?
They withdrew their support over concerns about shortcomings in anti-money laundering provisions and insufficient oversight for foreign stablecoin issuers.

How is the crypto industry mobilizing for the law?
Crypto advocates including Stand With Crypto and The Blockchain Association are encouraging people to contact their senators to support the bill, stressing the importance of clear regulations for the future of crypto in America.