The U.S. Senate has taken a significant step forward in regulating stablecoins, advancing the GENIUS Act and signaling potential legislative changes for crypto assets. With a 66-32 vote, the bill moves towards creating a regulatory framework for payment stablecoins, marking a historic shift in the U.S. approach to digital currency. This bipartisan support has garnered excitement from industry professionals who see it as a potential turning point. Notably, 16 Democratic senators reversed their previous opposition to the legislation this week, paving the way for further development of the bill.
The GENIUS Act introduces restrictions on stablecoin issuance by non-financial entities and limits interest payments, effectively reshaping how banks, fintech companies, and crypto firms operate. These measures aim to enhance market stability and regulatory oversight. Industry leaders have hailed this procedural vote as a landmark victory, anticipating a multi-year bull market in crypto markets as the result of this legislation.
The GENIUS Act represents a significant shift towards clarity in U.S. crypto law after years of uncertainty. It reflects a major effort by Washington policymakers to bring some order to the volatile and rapidly evolving world of digital currency. CoinMarketCap reports USDC (a leading stablecoin) trading at $1.00 with a market cap of $60.51 billion, highlighting its resilience in the face of regulatory uncertainty.
Experts believe that finalizing the GENIUS Act will boost institutional investor confidence and lead to increased liquidity in major crypto markets. This legislative clarity is expected to drive more capital into the industry.