U.S. Senate passed the GENIUS Act on June 18 with 68 votes in favor and 30 against, sending it to the House of Representatives for further deliberation. The legislation introduces the first comprehensive regulatory framework for stablecoins in the United States. The move is expected to enhance consumer protection and financial innovation while raising ethical concerns about conflicts of interest.
The U.S. Senate’s approval of the GENIUS Act signifies a significant step towards regulating stablecoins. With 68 votes in favor, the bipartisan decision demonstrates a keen interest in setting federal standards in the crypto sector. Senators Tim Scott and Kirsten Gillibrand were instrumental in advancing the legislation which aims to enforce one-to-one reserves and anti-money laundering mechanisms.
Stablecoin Regulation Advances with GENIUS Act Approval
Concerns about potential misuse of power have been highlighted by Democrats, especially given the financial involvement of the Trump family in the crypto market. While the bill fosters safer stablecoin markets, the lack of restrictions on presidential families’ profits has sparked controversy. Over $57 million in profits were made by the Trump family’s World Liberty Financial project last year.
Market observes a mixed reaction with experts noting the regulatory clarity as a positive development for stablecoin adoption. Elizabeth Warren, among others, voiced concerns over the absence of anti-corruption measures, underscoring possible conflicts of interest this legislation could engender. Her stance reflects an ongoing tension between innovation and ethical governance within the legislative process.
This bill marks a new era of bipartisan cooperation for consumer protection and innovation in the financial sector, ensuring stablecoins serve the American people safely. — Senator Tim Scott, U.S. Senate Banking Committee
GENIUS Act Sets Stage for U.S. Market Stability
Did you know? The GENIUS Act represents the U.S.’s first stablecoin regulation effort since previous bills like the STABLE Act, marking increased bipartisan support in digital finance legislation.
According to CoinMarketCap, USD Coin (USDC) remains steady at $1.00 with a market cap of $61.56 billion. The circulating supply totals approximately 61.56 billion USDC, maintaining its prominence in the stablecoin sector. Recent trading volume stands at $12.30 billion, marking a 6.39% increase over the last 24 hours, indicating sustained market confidence.
The Coincu research team indicates that the GENIUS Act might bolster U.S. market stability, drawing increased institutional interest. With regulatory uncertainty reduced, further investment in U.S.-backed stablecoin projects is likely, aligning with historical trends of increased legal clarity leading to innovation. For more details, see Genius Act Passes Senate: Client Update.
