USDT Regulatory Milestone: GENIUS Act Advances as Stablecoin Bill Heads to Senate

The U.S. Senate is poised to debate the GENIUS Act, a pivotal stablecoin regulation bill that could reshape the future of dollar-pegged cryptocurrencies like USDT and USDC. Here’s what you need to know about this landmark development in crypto governance.

U.S. Stablecoin Bill Nears Senate Debate as GENIUS Act Gains Momentum

Legislation to regulate stablecoin issuers in the U.S. could reach the Senate floor as early as next week, according to proponents of the GENIUS Act. The bill, formally titled the "Guiding and Establishing National Innovation for U.S. Stablecoins" Act, aims to create a regulatory framework for dollar-pegged tokens like USDC and USDT—cornerstones of crypto markets.

Senator Bill Hagerty, the Tennessee Republican sponsoring the measure, framed the upcoming debate as historic. The revised draft circulating this week incorporates modest language adjustments to address Democratic concerns, signaling potential bipartisan compromise.

Trump-Linked Firm’s $3M EOS Investment Sparks 9% Price Rally

EOS surged over 9% on May 16 after World Liberty Financial (WLFI), a company tied to former U.S. President Donald Trump, acquired $3 million worth of the token. The purchase of 3.636 million EOS at $0.824 each propelled the price from $0.77 to a daily high of $0.86, briefly lifting the asset out of broader market stagnation.

On-chain data reveals the transaction was executed using USDT, triggering renewed interest in the politically adjacent cryptocurrency. WLFI’s MOVE comes as the firm faces scrutiny from U.S. lawmakers, highlighting the growing intersection of digital assets and Washington influence networks.

GENIUS Act Vote on May 19: Will the U.S. Finally Regulate Stablecoins?

The U.S. Senate is set to vote on the GENIUS Act, a bipartisan bill co-sponsored by Senators Bill Hagerty (R-TN) and Kirsten Gillibrand (D-NY), aimed at establishing a regulatory framework for stablecoins. Despite earlier setbacks, including concerns over weak AML measures and insufficient consumer protections, the revised bill now includes enhanced safeguards and clearer bankruptcy protections for holders.

Senator Hagerty remains optimistic about the bill’s prospects, even as Democrats push for stricter oversight on foreign-issued stablecoins and ethical restrictions to prevent Big Tech from entering the space. The outcome of this vote could set a precedent for how digital assets are regulated in the United States.