BREAKING: U.S. Senate Greenlights GENIUS Act—Stablecoins Now Have Federal Backing
The crypto world just got its biggest regulatory win yet. The U.S. Senate passed the GENIUS Act today—effectively putting Washington''s stamp of approval on stablecoins. Game on.
Finally, some clarity—or at least a political band-aid. After years of regulatory limbo, dollar-pegged cryptocurrencies now have a federal framework. TradFi banks are already scrambling to adjust their ''blockchain is a fad'' PowerPoints.
Market impact? Expect volatility. Every institutional trader who''s been lurking on Crypto Twitter just got their compliance team''s blessing to dive in. The real question: Will this trigger a stablecoin arms race, or just give BlackRock another asset class to dominate?
One thing''s certain—the era of regulators pretending stablecoins don''t exist is over. Now if only they could apply that same urgency to fixing the dollar''s inflation problem.
A Divided Senate
Despite bipartisan support, several top Democrats opposed the bill over its lack of anti-corruption rules, particularly those aimed at preventing TRUMP and his family from profiting via crypto ventures. Senator Elizabeth Warren called it “thin regulation,” warning it could repeat the mistakes of the 2008 financial crisis.
“Why is the industry here asking for regulation? They want the Gold star of U.S. government oversight without really having significant oversight,” Warren said.
Senator Jeff Merkley had proposed an amendment to stop sitting presidents and their families from launching their own stablecoins, but Republicans blocked it. Democratic leader Chuck Schumer also criticized the bill, saying it didn’t go far enough to address corruption concerns.
Even so, Democrats like Kirsten Gillibrand and Ruben Gallego backed the bill, pointing to added consumer protections and FDIC oversight as key reasons for their support.
“Many constituents of mine and of others already have money in stablecoin, and there are no rules,” said Senator Ben RAY Luján.
Also Read: Warren Says Musk, Bezos May Misuse GENIUS Act for Stablecoins
