Senators Tweak GENIUS Act at 11th Hour—Here’s What Changed

Last-minute amendments hit the GENIUS Act as senators scramble to appease lobbyists—sorry, ’constituents’—before the final vote. Crypto provisions got a facelift, but Wall Street loopholes remain untouched (shocking, we know).

Key changes: Stricter DeFi reporting rules, softer custody requirements for institutional players—because nothing says ’innovation’ like letting banks play by different rules. The bill now heads to the floor with a 50/50 chance of being gutted further.

Fun detail: The ’anti-money laundering’ section somehow grew shorter. Must be all that efficient blockchain tech working its magic.

The draft amendment contains some rules that prevent public, non-financial tech firms from issuing their own stablecoins unless they meet strict standards. These include requirements regarding financial risk, consumer data privacy, and honest business practices. 

Additionally, one change in the amendment stops stablecoin issuers from misleading users by claiming that they have FDIC insurance or using government-like names such as “USG” or “United States Government.” Another section adds “master account guardrails,” ensuring the bill doesn’t allow unqualified firms access to Federal Reserve services.

The amendment adds provisions for special government employees and makes rules against conflict of interest apply to all, including figures such as Elon Musk. It also increases the penalties for breaching the rules and gives the Treasury greater power to suspend registrations in cases of careless or egregious misconduct.

The new amendment also addresses bankruptcy protections for stablecoin holders, though this is still pending. These last-minute changes come as the Senate prepares for what may be its final opportunity to approve the GENIUS Act under Rule 13, which requires unanimous consent for another chance if the next vote fails.

As the $205 billion stablecoin market grows and political pressure mounts, lawmakers are now deciding whether this updated version of the bill will be enough to break the deadlock. Meanwhile, as of yet, the final voting date hasn’t been announced.

Also Read: Will U.S. Senate Pass GENIUS Act on Next Voting Date? | The crypto Times