The United States Senate has voted to start official recognition of the Guiding and Establishing National Innovation for U.S. Stablecoins Act. The proposal of the GENIUS Act is the earliest regulatory framework targeting stablecoin payments, denoting a notable move to keep pace with the evolving world of digital finance. The bipartisan bill, which Senator Tim Scott has introduced, gets significant support from a coalition of Democrats and Republicans.
U.S. Senate Votes for GENIUS Stablecoin Act after Months-Long Negotiations
The U.S. Senate’s vote for the GENIUS Act comes after months of negotiations. This endeavor has been getting input from diverse stakeholders in tech, legal, and financial spheres. It was originally introduced in February, being co-sponsored by Kristen Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo), and Bill Hagerty (R-Tenn).
Later on, in March, Senator Angela Alsobrooks (D-Md) also joined the respective bill. The proposal reportedly takes closer to the provision of an effective regulatory framework to boost innovation. It also intends to shield consumers and maintain national security. Although the bill targets stablecoins, its proposal has impacted the wider crypto market, including Bitcoin ($BTC).
Stablecoin Bill Impacts Wider Crypto Market
The top crypto assets have witnessed a slight upturn amid growing optimism concerning regulatory clarity. However, the crypto dealings of the Trump family with World Liberty Financial, as well as the President’s dinner for key $TRUMP holders, have raised apprehensions among Democrats. Hence, many Senate Democrats have additionally unveiled bills focusing on the crypto ventures of the Trump family to keep the President from likely leveraging the deals.
The text of the bill takes into account a provision to prevent Congress members or senior officials from executive branch from releasing a stablecoin payment product. The GENIUS Act passed the Senate Banking Committee back in March while getting notable support from 5 Democrats. Hence, as this proposal moves forward, everyone is concentrating on Senate’s navigation through final amendments.
