The United States Senate is overwhelmingly advancing the GENIUS Act, which establishes a pioneering regulatory framework for stablecoins in the country. Its passage could take place next week, boosting transparency and security in this market.
The United States Senate voted in favor of the new draft of the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act). This vote, which ended with 66 votes for and 32 against During the day, it overcame a previous blockade driven by critical lawmakers, mainly Democrats, who had expressed concerns about the robustness of the protection measures and potential conflicts of interest related to the crypto industry.
However, after intense negotiations and adjustments to the text, the bill is now may be discussed in the full Senate, with bipartisan support that opens the door to its possible final approval in the next weeks, even before the Memorial Day break or Memorial Day, which is celebrated in the country on the last Monday of May each year.
Proponents of the GENIUS Act argue that this regulation will strengthen the global dominance of the U.S. dollar, protect users, boost demand for Treasury bonds, and foster innovation in the U.S. digital asset sector.
TRADE WITH STABLECOINS ON THE SAFEST PLATFORMA key legislative breakthrough for the crypto industry and the US dollar
The Senate's vote to advance the GENIUS Act represents a significant victory for the cryptocurrency industry, which has faced regulatory uncertainty in the United States for years. The proposal, as reported by this outlet, seeks to establish a clear federal legal framework for stablecoins, which are digital tokens backed by traditional assets, primarily the dollar.
Currently, the stablecoin market exceeds $240.000 billion, dominated by issuers such as Tether (USDT) and Circle (USDC). However, despite its exponential growth, the lack of clear regulation has raised concerns about user security, financial stability, and the potential illicit use of these assets. The GENIUS Act introduces strict requirements, such as full cash or Treasury bond backing for each stablecoin, mandatory audits for high-capitalization issuers, and special oversight for foreign entities, seeking to ensure transparency and trust.
This development is also strategic for maintaining the dollar's leadership in the global digital economy. Proponents argue that regulation will protect the dollar's role as a benchmark currency against growing competition from foreign and private digital currencies.
Furthermore, by establishing clear rules, innovation in the digital asset space is expected to thrive within the United States, preventing companies and startups from seeking more lax jurisdictions. Therefore, taking all this into account, the potential passage of the GENIUS Act could mark a turning point in the relationship between the traditional financial system and the crypto ecosystem, consolidating the United States as a benchmark in the regulation of this emerging technology.
Negotiations and adjustments that unblocked the debate in the Senate
The path to advancing this bill to the full U.S. Senate was not without obstacles. Initially, a bloc of Democratic senators opposed the motion to move forward with the approval process of the GENIUS Act, primarily due to concerns about insufficient consumer protections. These concerns created a blockage that prevented the bill from moving forward to broader debate. However, after days of talks Led by Senator Kirsten Gillibrand, amendments were made to the text that addressed some of these concerns, allowing Several Democrats will change their vote in favor and unblock the process..
YOUR DOOR TO THE CRYPTO WORLD, WITHOUT COMPLICATIONSAmong the improvements introduced are more robust mechanisms for monitoring and auditing stablecoin issuers, as well as guarantees that users have priority in recovering their funds in the event of an issuer's bankruptcy.
Although critical voices continue to call for greater safeguards, the bipartisan consensus reached reflects recognition of the importance of a clear and functional regulatory framework. From Bloomberg, they underline The Senate is now preparing to debate the bill on the floor, with the expectation that it can be passed before the Memorial Day recess, although some senators warn that the final vote could be delayed until after that date.
The potential impact and expectations on the crypto industry
The passage and eventual enactment of the GENIUS Act would have a profound impact on the cryptocurrency industry and the US financial system. On the one hand, it would establish clear rules for the issuance and operation of stablecoins, limiting participation to regulated entities such as banks or certified issuers, and prohibiting risky practices such as the rehypothecation of reserves or asset mixing. This would increase the confidence of users and institutional investors, which could translate into greater adoption of these digital assets in everyday transactions and financial markets.
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Furthermore, the law would strengthen demand for U.S. Treasury bonds, as stablecoins would be largely backed by these liquid assets, which would contribute to financial stability and the funding of the federal government.
The regulation is also expected to spur technological innovation in the sector by providing a clear legal framework that encourages the development of new applications and services based on digital assets. For the crypto community, the GENIUS Act is seen as a beacon that could cement Bitcoin and other cryptocurrencies as integral components of the global financial system, with the United States at the forefront of this transformation.
Clear crypto regulation expected by August
With the bill now open for debate in the Senate, the next step will be a detailed discussion of the text and consideration of possible amendments. Meanwhile, the House of Representatives is working on its own stablecoin regulatory proposal, known as the STABLE Act, so both chambers will eventually need to reconcile their versions to send a final text to the president for his signature. Although there is significant bipartisan compromise, some senators and critical groups continue to demand stronger consumer protections and measures against potential conflicts of interest.
TRADE CRYPTO WITH CONFIDENCE – GO TO BIT2ME LIFEMeanwhile, President Donald Trump has expressed his intention to have finalized legislation before August, underscoring the strategic importance his administration places on regulating dollar-pegged digital assets. The expectation is that, once passed, the GENIUS Act will not only regulate the stablecoin market but also lay the groundwork for broader regulation of the crypto ecosystem in the United States. This legislative process is being closely watched globally, given that US regulations often influence similar policies in other regions, including Latin America, where the impact could be particularly significant.
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