TLDR

Senate passes historic GENIUS Act to regulate stablecoins.
Tech giants like Meta face strict limits on digital coin issuance.
Trump’s crypto ties spark backlash but fail to block the bill.
GENIUS Act heads to the House, challenging the STABLE Act.
Lawmakers clash over who controls America’s crypto future.

The U.S. Senate has passed the GENIUS Act, marking the first successful federal crypto legislation. With a 68-30 vote, the bill gained bipartisan support after prolonged debate and negotiation. It now heads to the House of Representatives for further consideration.

The GENIUS Act aims to regulate stablecoins by mandating full U.S. dollar reserves and regular audits for large issuers. Lawmakers also introduced consumer protection rules and a new oversight framework for digital dollar issuers. The legislation targets financial stability and seek to secure U.S. dominance in global crypto markets.

The bill prohibits tech giants like Meta and Amazon from issuing stablecoins unless they meet regulatory criteria. It gives stablecoin holders priority in bankruptcy cases, enhancing investor protection during issuer insolvency. The legislation also limits high-risk activities and enforces transparency through audit and reserve disclosure.

Bipartisan Deal Faces Scrutiny Over Trump’s Ties to Crypto

Supporters emphasized the GENIUS Act’s ability to modernize payment systems and encourage responsible digital asset growth. However, Democratic leaders raised concerns over President Trump’s financial involvement in crypto ventures during the bill’s drafting. They criticized the removal of proposed restrictions on public officials profiting from stablecoin activities.

Eighteen Democrats backed the legislation, citing improved consumer protection and financial inclusion. Some lawmakers pushed for stronger anti-corruption measures, but GOP leaders blocked amendments affecting Trump or his affiliates. Negotiations eventually narrowed to minor adjustments allowing final passage in the Senate.

President Trump’s administration fully supports the bill, with advisors pledging a swift signature upon House approval. The administration argues the law will reduce uncertainty and strengthen the U.S. dollar’s global position. Critics warned of potential conflicts of interest and weak enforcement mechanisms.

GENIUS and STABLE Bills Set Up Regulatory Clash in House

The House faces a decision between advancing its own STABLE Act or adopting the Senate’s GENIUS framework. The key differences are the regulatory authority and the distribution of yield-bearing stablecoins. GENIUS centralizes oversight under the Treasury, while STABLE divides roles among federal agencies.

Reconciliation between bills may prove difficult, given opposing views on issuer approvals and enforcement. The House may consider merging elements or proposing a new version to bridge the gap. Time constraints remain, as Trump has requested stablecoin legislation on his desk by August.

Financial lobbyists have shown interest in shaping the outcome, especially regarding nonbank issuers. Some members favor strict rules to avoid corporate abuse, while others prioritize innovation and competitiveness. Congressional aides expect extensive discussions before a final version.

 

The post GENIUS Act Moves to House After Historic Senate Approval appeared first on CoinCentral.

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Filed under: News - @ June 17, 2025 11:27 pm