- The GENIUS Act establishes federal oversight for stablecoins exceeding $10 billion in market cap, reinforcing investor confidence.
- The bill allows state-level regulation only if it meets federally approved guidelines to ensure consistent enforcement.
- Stablecoins will be classified as digital cash, expanding their use beyond trading into daily transactions and online payments.
The United States Senate is preparing for a final vote on the GENIUS Act, a federal bill that could reshape stablecoin regulation nationwide. Scheduled for 4:30 p.m. ET, this vote marks a critical step in passing legislation that would establish clear rules for stablecoins issued in the U.S., particularly those with large market capitalization.
This would be through the introduction of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS), which would provide federal regulation to any stablecoin issuer with assets under management of more than 100 billion. It also has a structure of state-level supervision in case it does not conflict with national standards. Such a design is supposed to promote compliance and the innovative spirit.
Trade associations react to government pressure
Coinbase Chief Legal Officer Paul Grewal responded positively to the bill’s progress. He expressed optimism over bipartisan support, emphasizing how far digital asset legislation has developed in the past year. Others in the digital asset space, including Cardano advocate Rick McCracken, echoed that sentiment, acknowledging legislative interest in promoting responsible crypto growth.
The legislation designates stablecoins as digital cash, broadening their potential usage beyond cryptocurrency markets. Analysts at Bernstein noted the bill’s passage could transform stablecoins into a core infrastructure for online payments, signaling a major evolution from their existing role as trading and settlement tools.
The crypto community reacted favorably on different platforms, and the introduction of the GENIUS Act was considered an indication of maturing policy in the United States concerning digital assets. Long-standing requests to clarify regulations: this federal strategy was adopted by many investors and developers as the vehicle for responsible expansion and wider acceptance.
