In a move that could reshape how the U.S. treats digital dollars, the Senate is preparing to vote on a newly amended version of the GENIUS Act—a federal bill designed to bring stablecoin regulation under one roof. After a tense procedural vote last week.
In a move that could reshape how the U.S. treats digital dollars, the Senate is preparing to vote on a newly amended version of the GENIUS Act—a federal bill designed to bring stablecoin regulation under one roof. After a tense procedural vote last week, lawmakers have set June 17 as the final vote date.
So, what’s at stake? Quite a bit, especially for the crypto industry, big tech players, and even U.S. politics itself.
What Is the GENIUS Act?
Short for “Guiding and Establishing National Innovation for U.S. Stablecoins,” the GENIUS Act is Washington’s attempt to finally define the rules of the road for stablecoins like USDC and USDT.
Here’s what the amended version now proposes:
- 1:1 Reserve Backing: Every issued stablecoin must be backed by real-world assets like cash or U.S. Treasuries to keep things transparent and secure.
- Mandatory Audits: Issuers must undergo routine audits and meet strict regulatory requirements.
- Foreign Issuers? Not So Fast: Offshore stablecoin issuers will be banned unless they fully comply with U.S. laws.
- No Yield Gimmicks: “Interest-bearing” or yield-style stablecoins will face limitations to protect retail investors from hidden risks.
Political Flashpoints Holding Center Stage
Despite passing the initial Senate vote with support from both parties, the bill isn’t without controversy.
One of the more eyebrow-raising parts? A clause that exempts the sitting president and vice president from restrictions on owning or issuing stablecoins. Critics say this opens the door for potential conflicts of interest, especially since members of the Trump family have recently been connected to crypto ventures.
Senator Elizabeth Warren didn’t hold back, calling it “an unacceptable loophole” and warning it could give the White House too much freedom to meddle in the stablecoin space.
There’s also growing concern around Big Tech’s involvement. Under the latest tweaks to the bill, tech giants like Meta or Apple would be barred from issuing their own stablecoins, particularly if they monetize user data.
Why This Bill Matters Now
For years, stablecoins have sat in a legal gray zone in the U.S., with regulators unsure whether they’re securities, commodities, or something else entirely. This has kept large institutions on the sidelines.
But all that could change if GENIUS passes.
Clear regulations could finally unlock mainstream adoption, giving big financial players and even tech companies a framework to safely integrate stablecoins into their platforms.
Already, companies like PayPal, Stripe, and Visa are testing the waters. And with stablecoin market caps nearly doubling since early 2024, it’s clear that demand isn’t slowing down.
What Comes Next?
If the Senate passes the bill on June 17, it will head to the House of Representatives for final debate. Meanwhile, a companion proposal in the House, the CLARITY Act, aims to define how the SEC and CFTC will share oversight of digital assets more broadly.
The final shape of stablecoin regulation is still up in the air, but one thing is clear: the U.S. is finally getting serious about setting the rules for digital money.
Final Thoughts
Whether you’re an investor, a builder, or just crypto-curious, this vote matters. It’s the first real attempt to treat stablecoins like a legitimate part of the financial system with both protections and opportunities.
Keep your eyes on June 17. This could be a turning point.
