US Senate passes GENIUS Act, boosting regulation of stablecoins

• GENIUS Act passes to regulate stablecoins in the US
• Senate advances bill after Republican support
• Regulation of stablecoins gains momentum in Congress

The United States Senate has passed the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS) in a decisive procedural vote, reaching 66 votes in favor and surpassing the minimum of 60 needed to prevent a filibuster. measure represents a significant step towards formalizing the regulation of stablecoins in the country.

The closing vote now allows the bill to be sent to the full plenary for full deliberation, where it may undergo amendments before final approval. The legislation seeks to establish a regulatory framework for stablecoin issuers, creating federal guidelines for an industry that has previously operated under fragmented state-level regulations.

Introduced by Senator Bill Hagerty, the proposal came with bipartisan support, including names such as Tim Scott, Cynthia Lummis, Kirsten Gillibrand and Angela Alsobrooks. However, the current version of the text has only Republican support, after Democrats withdrew it due to concerns about possible conflicts of interest.

These concerns relate to World Liberty Financial (WLF), a stablecoin issuing company associated with former President Donald Trump. Democratic lawmakers have argued that the proposal could directly or indirectly benefit the former president, compromising the intended regulatory neutrality.

Still, the measure had garnered significant support in the Senate Banking Committee in March, bolstering its political clout even amid partisan divisions.

The passing of the cloture motion signals a new stage in the legislative debate on digital assets in the US, especially as it relates to stablecoins. With pressure growing for clear regulation in the sector, the advancement of the GENIUS bill could dictate the pace of future public policies aimed at cryptocurrencies in the country.

Now, expectations revolve around the discussions in the plenary and possible changes to the text, which could redefine the regulatory obligations of issuing companies and their ties with traditional financial institutions.