Senate Deadlock on GENIUS Act – Will Stablecoins Get Clarity Before August?

Washington’s favorite circus act—legislators debating crypto—hits another snag as the GENIUS Act stalls in the Senate. Stablecoin issuers left sweating over whether they’ll get regulatory certainty by summer’s end.

Key sticking points? The usual suspects: state vs. federal oversight, reserve requirements, and which Wall Street lobbyist gets to write the rules this time. Because nothing says ’decentralized future’ like legacy finance carving up the pie first.

August deadline looms, but don’t hold your breath. These are the same folks who took a decade to define ’email.’

Mixed reactions from Democrats and Republicans

Adding on the sentiment, Kraken Global Head of Policy and Government Relations Jonathan Jachym said in a statement, 

“Other major economies around the world are years ahead in putting clear rules in place for stablecoins and centralized intermediaries.”

He added,

“After many years of legislative progress, it is critical that U.S. lawmakers come together in the coming months to finalize stablecoin and market structure bills by August.”

Hence, what began as a seemingly bipartisan initiative through the Senate Banking Committee, passing with an 18-6 vote, has now become a lightning rod for controversy.

This coincided with USD1 recently exploding past a $1 billion market cap, much of it minted within a single hour, raising further questions about the intertwining of political power and private crypto ventures.

Echoing similar sentiments,  Senator Bernie Sanders cautioned, 

“The GENIUS Act would undermine consumer protections, benefit criminal actors, and allow the TRUMP family to make tens of millions of dollars through crypto ventures.” 

GENIUS Act vs. STABLE Act

However, despite ongoing political friction, the GENIUS Act is gaining traction as the favored stablecoin legislation.

Senator John Thune has hinted at imminent Senate action, while the WHITE House reportedly prefers this version over the STABLE Act due to its innovation-friendly, state-level provisions.

Bo Hines of the Presidential Working Group aims to have the bill on Trump’s desk within two months.

Therefore, while a Conference Committee could delay that timeline, insiders believe a strong Senate vote, potentially 70 or more, could push the House to adopt the GENIUS Act outright, fast-tracking stablecoin regulation.