Stablecoin Showdown: Senate Prepares for Round Two on Regulatory Bill

Lawmakers circle back with revised legislation—because nothing says ’urgent financial reform’ like a second attempt after the first draft flopped.

Subheader: The Crypto Lobby’s Groundhog Day

Washington’s favorite dance—regulatory whiplash—continues as senators tweak wording to please both Wall Street and crypto anarchists. Spoiler: Nobody’s happy.

Bonus jab: Watch traditional finance firms suddenly ’discover’ blockchain innovation if the bill includes favorable custody rules.

Stablecoin legislation

The GENIUS Act would require stablecoin issuers to hold reserves in SAFE assets such as Treasury bills, comply with anti-money-laundering laws, and ensure consumer priority in the event of bankruptcy. 

Stablecoins like Tether’s USDT (USDT) and Circle’s USDC (USDC) underpin much of the $3.3 trillion crypto trading market.

Some Democrats remain uneasy about the potential for stablecoins to become gateways for tech giants into banking, while crypto advocates argue the bill is a crucial first step in modernizing U.S. financial infrastructure. 

Industry groups say failure to pass the bill would further delay clearer regulation for crypto exchanges and token issuers—legislation that remains more controversial.

The bill is expected to have an easier path in the House. Still, even if the Senate clears this hurdle, broader crypto regulation may face stronger headwinds amid growing scrutiny of former President Trump’s financial ties to the sector.