Stablecoin Bill Resurgence: US Senate Set to Pass GENIUS Act
The US Senate‘s recent setback on the crucial stablecoin legislation, the Guiding and Establishing National Innovation in U.S. Stablecoins of 2025 (GENIUS Act), seems to be just a temporary bump in the road. Cody Carbone, CEO of Digital Chamber, a prominent blockchain advocacy group, believes the bill will pass within the coming weeks.
Speaking at the Consensus 2025 conference, Carbone emphasized the importance of comprehensive stablecoin regulations for the US to safeguard its financial supremacy in the global market. He highlighted the bipartisan support for the GENIUS Act, indicating a strong consensus across political lines.
While the recent procedural vote failure on May 8th threw a wrench into the legislative process, Carbone remains optimistic: “These things never move as quickly as we want them to move, but it’s stablecoin legislation. This Congress has already moved more expeditiously than we ever could have imagined. So, yes, it’s a bump in the road, but I think very, very shortly, we will have another vote.”
Political Turmoil and the Trump Factor
The GENIUS Act‘s recent setback was attributed to the withdrawal of support from several Democratic lawmakers. Their concerns centered around US President Donald Trump‘s involvement in crypto, citing potential ethical conflicts. Coinbase‘s chief legal officer, Paul Grewal, echoed these concerns, highlighting the complexities arising from Trump‘s activities in the memecoin, DeFi, and NFT sectors.
Republican Senator Tim Scott countered these concerns, attributing the bill’s failure to partisan politics and an attempt by Democrats to hinder Trump‘s administration’s digital asset goals.
The latest version of the GENIUS Act has now been revised to remove references to the Trump family, paving the way for a potential Senate passage by the end of May, according to industry insiders.
Implications and Future of Stablecoin Regulation
The passage of the GENIUS Act would be a significant milestone in US crypto regulation, providing a much-needed framework for stablecoin issuance and operation. This could potentially attract further investment into the US crypto market and strengthen its position as a global financial hub.
However, the recent political maneuvering highlights the challenges of navigating complex regulatory landscapes, especially when dealing with emerging technologies like cryptocurrencies. The GENIUS Act‘s journey serves as a reminder of the intricate interplay between political dynamics, industry interests, and the evolving regulatory landscape in the crypto world.
