GENIUS Act, a key piece of U.S. stablecoin regulation that gives a head start to U.S.-regulated issuers, is advancing in the Senate. The news sparked widespread reaction across the crypto industry, with Coinbase’s Chief Legal Officer, Paul Grewal, calling it a watershed moment.
In a recent tweet, Grewal shared his surprise and optimism over the milestone: “Today we are going to see the United States Senate pass major crypto legislation with bipartisan support. A year ago I would’ve thought this at best was a fever dream. Think for a moment on how far we’ve come.”
The crypto community also shares this optimism. Prominent Cardano supporter Rick McCracken commented similarly: “We have made so much progress the past couple of years in the crypto space. Very happy to see elected representatives are actually excited to pass pro-digital asset legislation.”
This reflects broader sentiment among crypto holders, who have long demanded clear regulatory frameworks that encourage innovation while protecting investors.
GENIUS Act
The GENIUS Act, or the Guiding and Establishing National Innovation for U.S. Stablecoins Act, aims to reintroduce stablecoin innovation to the country. It requires federal regulation for stablecoins with a market capitalization of more than $10 billion, with the potential for state regulation if it aligns with federal rules.
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The bill treats stablecoins as digital cash, intending to drive wider mainstream use for payments beyond their use as a settlement currency for digital assets.
Bernstein predicts that after the act is passed, “Stablecoins will evolve from the money rail of crypto to the money rail of the internet.”
The Senate will hold its final passage vote on the GENIUS stablecoin at 4:30 p.m. ET, marking the final vote before the legislation moves to the House.
