The passage of the GENIUS Act by the U.S. Senate marks a significant development in the regulation of stablecoins and the integration of digital assets into the country's financial system.
Voting Outcomes and Purpose of the Bill
The U.S. Senate passed the GENIUS Act by a vote of 68 to 30. Introduced by Senator Bill Hagerty of Tennessee, the bill seeks to create a clear regulatory framework for the stablecoin market in the country. Hagerty noted that the bill would help Americans and businesses process payments in near real-time, removing delays that can take days or weeks.
Political Obstacles and Discussions
Despite the successful vote, the bill encountered mixed reactions. It initially failed a cloture vote in May, largely due to Democratic concerns over Donald Trump's involvement in the crypto space. Hagerty emphasized that Trump would support any stablecoin legislation approved by a Republican-led Congress.
Future Prospects for Stablecoins
Treasury Secretary Scott Bessent projected that the stablecoin market could reach a market cap of $3.7 trillion by 2030, emphasizing the importance of the GENIUS Act in achieving that growth. However, the bill has also faced criticism, with Bartlett Naylor of Public Citizen calling it a 'massive scam with the American flag,' accusing lawmakers of ignoring potential personal financial gains from crypto for Trump.
While the GENIUS Act has overcome a significant hurdle, its fate now lies in the hands of the House of Representatives, where new discussions and possible amendments are expected. The coming months will be crucial in shaping the future of stablecoin legislation.
