The Guiding and Establishing National Innovation for US Stablecoins Act or the GENIUS Act is on the brink of a decisive vote in the United States Congress. This critical legislation carries significant implications for the cryptocurrency sector.
If the US Senate approves the GENIUS Act, it would bring the nation closer to regulating stablecoins, marking a significant victory for the cryptocurrency industry. The Trump administration, a key supporter of the bill, is keenly watching its progress. After passing through the Senate, the bill would be subject to further scrutiny in the House of Representatives.
On June 11, the Senate moved the bill forward with a 68-30 vote, allowing for amendments before the final vote. Several Democrats sided with a majority of Republicans to win the vote, sharing President Donald Trump’s vision of making the US “the global hub of cryptocurrency.”
Industry leaders like Coinbase’s Chief Legal Officer, Paul Grewal, have expressed optimism about the potential of the GENIUS Act to enhance regulatory clarity. However, there are critics as well, pointing out the lack of sufficient safeguards in the act, especially around potential conflicts of interest related to authorized stablecoin issuers. Senator Elizabeth Warren, a prominent critic, has expressed concerns that the bill could facilitate misuse linked to Trump’s crypto ventures.
Key amendments to the legislation include a provision that aims to prevent elected officials and their families from issuing stablecoins, addressing some concerns about potential conflicts of interest.
Enacting the GENIUS Act could drastically change the US cryptocurrency regulatory landscape. Industry insiders told Cointelegraph that the legislation might bolster the dollar’s role in the digital economy and pave the way for a more structured global financial framework.
The GENIUS Act proposes an oversight system for stablecoins, requiring issuers to register with the US government. The Act also mandates 1:1 backing for stablecoins, regular audits, and adherence to Anti-Money Laundering regulations.
Roshan Robert, CEO of OKX US, sees the GENIUS Act as a “strong signal” of the US government’s practical approach towards digital asset innovation. The Act would create a crucial link between traditional finance and blockchain-powered payments and settlements.
Stablecoins, mostly pegged to the US dollar, are often seen as a vital link between traditional finance and digital assets. These tokens could enable people worldwide to send money across borders with lesser fees and make payments at various merchants.
The legislation could also pave the way for regulating decentralized, programmable money, potentially impacting the prospects of a central bank digital currency (CBDC) in the US.
Mike Cahill, CEO at Douro Labs, added, “If the U.S. gets this right, it won’t just lead the crypto market — it will write the rulebook for the next global financial system.”
Ever since Trump imposed tariffs on trade partners, debates around de-dollarization, the potential global shift away from reliance on the US dollar as the global reserve currency, have intensified. Supporters of the bill argue that it could strengthen the dollar’s position as most stablecoins are pegged to the dollar, potentially enhancing its influence in the digital economy.
According to DefiLlama, the two largest stablecoins in the crypto space, Tether’s USDt (USDT) and Circle’s USDC (USDC), are pegged to the dollar. Together, these tokens represent $217.5 billion or 86.4% of the total stablecoin market cap of $251.7 billion.
