On July 17, the U.S. House of Representatives cast a vote of 308 to 122 in favor of the GENIUS Act, a bill that aims to regulate stablecoins. The legislation is now headed to President Trump’s desk, signaling a potential establishment of federal regulations on dollar-pegged digital tokens.
Stablecoins in the Spotlight
The GENIUS Act sets a clear guideline: all stablecoins must be backed 1:1 by cash or liquid assets, and issuers are required to disclose their reserves publicly. Advocates believe this measure could prevent crises similar to the Terra situation and grant U.S. users reliable stablecoins.
“Tomorrow at 2:30 PM EST, an important historical moment will occur as Trump signs the GENIUS Act, witnessed by industry leaders and lawmakers. (Translation: Tomorrow at 2:30 PM EST, a historical moment will be recorded with the signing of the Genius Act by Trump, witnessed by industry leaders and lawmakers.)
This move responds to increasing demands from cryptocurrency advocates for more transparency and security regulations.
A Coordinated Legislative Effort
The GENIUS Act is part of a larger legislative strategy that includes the CLARITY Act and the Anti-CBDC Surveillance State Act. The CLARITY Act would increase the CFTC’s oversight over crypto markets, while the Anti-CBDC Act seeks to block Federal Reserve’s advancements on a digital dollar. All three bills were expedited during the “Crypto Week” initiative.
Trump’s Support for Crypto
President Trump has recently expressed strong support for cryptocurrencies, which he sees as a leading option for the U.S. Enhancing the GENIUS Act would be a significant step in demonstrating that support.
Dissenting Voices
However, concerns have been raised by lawmakers like Maxine Waters and Elizabeth Warren about the adequacy of safeguards within the bill, suggesting potential conflicts of interest, particularly regarding ties to cryptocurrency firms by members of Trump’s family. Meanwhile, industry representatives view the bill positively as it indicates that Washington is ready for engagement rather than resistance.
What’s Next for the Senate?
While the GENIUS Act has already passed the Senate, the future of the other two bills is uncertain. It remains to be seen if Senate leaders will expedite their review or allow delays, which could significantly influence how regulatory clarity in the cryptocurrency space evolves before the next election.
Market Reactions
In anticipation of the legislative shift, Bitcoin’s price rose prior to the vote and maintained stability thereafter. Analysts suggest that the trajectory now depends heavily on Senate actions. If all three bills reach the President’s desk successfully, it may attract new institutional investments into the cryptocurrency sector, filling the gaps left by previous hesitations.
In Conclusion
The passage of the GENIUS Act could mark the start of a significant new chapter for U.S. policy on cryptocurrencies. It sets a vital precedent for stablecoins, reflecting a growing acknowledgment by lawmakers of the importance of digital assets. The real challenge lies ahead in translating this momentum into lasting legislative change.
