The U.S. Senate is preparing for a decisive vote on the GENIUS Act, which may significantly impact stablecoin regulation and the banking sector.
The Purpose of the GENIUS Act
The GENIUS Act, officially known as the 'Guiding and Establishing National Innovation for U.S. Stablecoins Act', aims to protect the claims of stablecoin holders. If passed, it may lead to changes in regulatory rules for stablecoin issuers, affecting risk management in both banking and crypto companies.
Reactions from the Senate and Financial Institutions
Senator Josh Hawley, a vocal critic of the GENIUS Act, emphasizes the potential increase in Big Tech influence. Other Senate members share similar concerns. However, credit union leaders, such as Jim Nussle, have actively participated in the bill's negotiations. Responses from financial institutions are varied, and the sector awaits the broader reactions to the vote.
Market Impact and Stablecoins
The impending vote on the GENIUS Act may herald new regulatory standards for stablecoins. According to CoinMarketCap data from June 16, 2025, Tether USDt is priced at $1.00, with a market cap of $155.58 billion. Future regulatory changes may affect credit risk management and accelerate technological integrations between cryptocurrencies and traditional finance.
The expected vote on the GENIUS Act promises significant changes to the U.S. financial sector, potentially influencing stablecoin regulations and further integrations between cryptocurrencies and banking institutions.
