The Senate will have another go at passing the GENIUS Act today at 8:35 PM EST—right after the vote on Jared Kushner’s appointment. Following necessary revisions, GOP leaders are optimistic that the bill will pass, citing verbal commitments from Democrats who previously barred the bill.
The additional time before the vote is being used to address remaining concerns and finalize potential adjustments to secure bipartisan backing. While the bill failed to advance last week, Republican leadership believes the latest negotiations have shifted the dynamics, increasing the chances of approval.
If approved, the GENIUS Act will introduce new regulations on stablecoin issuers, including restrictions on Big Tech companies, enhanced consumer protections, and a shift in enforcement authority to the Treasury Department.
The outcome of tonight’s vote could determine the future of stablecoin oversight in the U.S., with lawmakers aiming to pass the bill before the Memorial Day recess.
What is The Genius Act
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) is a proposed federal framework for stablecoin regulation. It aims to bring clarity to the digital asset space, ensuring that stablecoins operate under strict reserve, licensing, and consumer protection standards.
Key Provisions of the GENIUS Act:
- Stablecoin Classification: Defines payment stablecoins as non-securities, separating them from traditional financial assets.
- Reserve Requirements: Issuers must fully back stablecoins with liquid assets like cash and Treasury bills to prevent de-pegging.
- Licensing & Oversight: Establishes federal and state regulatory pathways for stablecoin issuers, ensuring compliance with capital and liquidity standards.
- Marketing Restrictions: Prohibits stablecoins from misrepresenting government backing, preventing misleading claims about FDIC insurance or U.S. government affiliation.
- Big Tech Ban: Blocks non-financial public companies like Meta, Amazon, and Google from issuing stablecoins.
- Treasury Enforcement: Shifts regulatory authority from the SEC and CFTC to the Treasury Department, centralizing oversight.
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