Senate Warms to GENIUS Act—Another Bill Promising to ’Fix’ Crypto While Wall Street Licks Its Chops

Lawmakers dust off their ’blockchain for dummies’ guides as the GENIUS Act picks up steam. Because nothing screams ’innovation’ like DC playing catch-up with a technology that’s been around since 2009.

The bill—packed with the usual carve-outs for institutional players—claims to ’clarify’ crypto regulation. Translation: another layer of bureaucracy that’ll somehow make VCs richer while retail traders foot the bill.

Watch the hearings for peak irony: senators who still print their emails will pontificate on ’digital asset frameworks’ between naps. Meanwhile, Bitcoin’s hash rate hits another ATH—no permission needed.

GENIUS Act Sets Rules for Stablecoins

The bill lays out a clear structure for stablecoin regulation. It requires issuers to hold one-to-one reserves in cash or U.S. Treasury securities. Only licensed firms will be allowed to issue these tokens. Large issuers—those with more than $10 billion in circulation—will face federal oversight.

The act also bans algorithmic stablecoins and includes strong anti-money laundering (AML) and know-your-customer (KYC) protocols. These rules aim to prevent fraud and increase trust in digital assets. Supporters say this will finally bring clarity to the $250 billion stablecoin market. Industry leaders, including executives from Coinbase and Ripple, have welcomed the bill’s standards.

Political Firestorm Over Trump’s Crypto Empire

The GENIUS Act’s progress hasn’t been smooth. At the center of the drama is President Donald Trump’s growing crypto presence. Critics, especially Senator Elizabeth Warren, say the bill could boost Trump’s personal stablecoin project, USD1. They worry it allows the former president to profit from a law he could influence.

Warren called the bill a gift to “crypto corruption,” pointing to the TRUMP family’s many blockchain ventures. These include a fast-growing stablecoin and a crypto mining firm eyeing a public listing. Still, most lawmakers who had concerns now say the industry’s rapid growth makes action unavoidable. They argue that regulation is better than letting the space grow unchecked.

What Happens After the Senate?

If the GENIUS Act passes the Senate, it heads to the House of Representatives. The House has its own version of a stablecoin bill—the STABLE Act. Analysts expect lawmakers to reconcile the two bills, creating a single set of rules. This WOULD give the U.S. its first full legal framework for stablecoins.

Supporters from both parties hope for a quick resolution. The goal is to finish the process and send the bill to President Trump for final approval. While he stands to gain from the law, the GENIUS Act would apply to all players in the industry equally. It’s about rules, not rewards.

Why the GENIUS Act Matters

The GENIUS Act is a turning point for U.S. crypto policy. For years, stablecoins operated in a legal gray zone. Now, there’s a push to bring them under federal oversight. This helps protect investors, stop illegal activity, and keep the dollar strong in digital markets.

The U.S. is joining countries like Brazil and the EU in setting clear crypto rules. This could attract more investment and foster safer innovation. For the crypto industry, the GENIUS Act could be the law that finally brings stability to stablecoins. Whether it passes the House remains to be seen, but the Senate’s support is a big first step.