The GENIUS Act, a key piece of U.S. stablecoin regulation, is moving forward in the Senate, prompting reactions from within the crypto industry.
What is the 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 over $10 billion, while allowing for potential state regulation if it aligns with federal rules. 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.
Crypto Industry Reaction
The progress of the GENIUS Act has sparked widespread reactions from the crypto industry. Coinbase’s Chief Legal Officer Paul Grewal characterized the event as a watershed moment. In a recent tweet, he stated: '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.' Prominent Cardano supporter Rick McCracken also noted, '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.'
Future of Stablecoins in the U.S.
Experts predict that after the act is passed, stablecoins may evolve from being the monetary rail of crypto to the monetary rail of the internet. The Senate is set to hold its final passage vote on the GENIUS Act at 4:30 p.m. ET, marking the last vote before the legislation moves to the House.
The passage of the GENIUS Act could be a game-changer for stablecoins in the U.S., increasing the encouragement of innovation and investor protection within the crypto industry.
