The U.S. Senate voted against the GENIUS Act, aiming to establish a regulatory framework for stablecoins, reflecting political tensions and uncertainty in the crypto market.
Senate Votes and Political Landscape
The Senate voted 48-49 against the GENIUS Act, a bill intended to create a regulatory framework for stablecoins in the U.S. The opposition mainly came from Democrats, citing concerns about alleged corruption risks linked to the Trump family's involvement with crypto.
Impact of the Rejection on the Stablecoin Market
The bill aimed to establish a comprehensive regulatory system affecting major operators like USDC and USDT. Its rejection perpetuates market uncertainty, affecting traders and businesses relying on stablecoin transactions.
Public Response and Future of Regulation
Public and industry reactions varied, with Sen. Mark Warner emphasizing the need for further protections and bipartisan challenges. Senator Bill Hagerty remarked, 'the vote effectively represented killing the crypto industry here in America.'
The Senate's rejection highlights complex political dynamics surrounding crypto regulation. The future of stablecoins in the U.S. remains uncertain, which could impact innovation and the country's competitiveness in the global market.
