The American Bankers Association and over fifty organizations have urged the Senate Banking Committee to amend the GENIUS Act concerning stablecoins. The focus is on ensuring competitive equity and improving market structure.
Call for Overhaul of the GENIUS Act
The American Bankers Association, along with Americans for Financial Reform and 52 other groups, submitted a letter to the Senate Banking Committee requesting modifications to the GENIUS Act. Key demands include the removal of provisions that could grant advantages to state-chartered banks.
Impact on the Stablecoin Market
Pressure from these groups aims to eliminate clauses allowing stablecoin affiliates to offer returns, potentially shifting the approach to stablecoin management. They emphasize the need for broader legislation in the cryptocurrency sector that goes beyond just stablecoins, advocating for comprehensive market reform.
Prospects for Cryptocurrency Regulation
The first federal attempt at stablecoin regulation in the U.S., the GENIUS Act, follows stalled state-level efforts over the past decade, highlighting the desire for a unified federal approach. As of August 14, 2025, USDC maintains a market cap of $67.67 billion with a stable price of $1.00. However, trading volumes have risen by 26.92%, indicating increased interest in stablecoins.
In conclusion, the call for amendments to the GENIUS Act highlights issues of competitiveness and safe practices in stablecoin management, which could significantly impact the further development of the cryptocurrency market.
