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U.S. Senate Passes GENIUS Act: A Historic Move for Stablecoin Regulation
The U.S. Senate has made a significant stride in cryptocurrency regulation by passing the GENIUS Act with a 68–30 vote, establishing it as the first federal law governing stablecoins. This legislation comes after extensive debates and protests relating to potential crypto-corruption, particularly in light of Donald Trump’s expanding associations within the crypto arena.
Opposition arose mainly from progressive Senators who voiced concerns sobre Trump’s influence and potential conflicts of interest linked to cryptocurrency. Despite this, the bill gained robust bipartisan support, underscoring a collective push towards establishing regulatory frameworks in the crypto space.
Overview of the GENIUS Act
The GENIUS Act allows Treasury Secretary Scott Bessent expansive regulatory authority, as he anticipates that the U.S. stablecoin market could exceed USD 2 trillion (AU$ 3.09 trillion) in the coming years. However, the legislation’s political implications have already stirred controversy, particularly following the exclusion of anti-corruption provisions that were meant to oversee the financial actions of Trump and other officials. Progressive Senator Elizabeth Warren voiced her discontent, expressing that the bill would facilitate unchecked financial power among political insiders.
Despite these warnings, the Senate’s approval of the GENIUS Act marked a victory for its key proponent, Senator Kirsten Gillibrand. It signifies that crypto regulation is becoming increasingly integral to financial policymaking in the US.
Future Challenges Ahead
While the passage of the GENIUS Act addresses fundamental regulations surrounding stablecoins, it leaves unaddressed several complex issues, including market structure, decentralized finance (DeFi) frameworks, and questions about federal versus state jurisdiction. Ironically, this piece of legislation was initially described as the “easy” one, designed to be a straightforward venture into crypto regulation. However, it faced significant obstacles, delaying its progression to the Senate floor, where it met a rocky path before finally being approved following intense negotiations.
Senator Cynthia Lummis (R-Wyoming), during a speech at Bitcoin 2025 in Las Vegas, reflected on the arduous journey the GENIUS Act faced. She candidly acknowledged that what was perceived as a viable starting point in stablecoin regulation turned out to be far more challenging than anticipated.
“We thought it would be easiest to start with stablecoins,” Lummis admitted. “It has been extremely difficult. I had no idea how hard this was going to be.”
Conclusion
As the GENIUS Act progresses to the House, the political friction surrounding its provisions may lead to further debate and potential amendments. While it sets a foundational framework for stablecoins, the path ahead entails a plethora of outstanding issues waiting to be resolved. This legislation could ultimately shape the future landscape of cryptocurrency regulation in the United States, signalling the importance of collaboration across party lines in managing the emerging complexities of digital finance.
