GENIUS Act Advances in U.S. Senate Amid Crypto Industry Debates

According to Cointelegraph, the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, has moved closer to becoming law following a significant vote in the U.S. Senate. On Tuesday, the Senate passed an amended version of the bill with a 68-30 vote, approximately six weeks after its introduction by Tennessee Senator Bill Hagerty. The bill's companion, the STABLE Act, is expected to be considered next in the House of Representatives, where it may encounter further amendments. Senator Hagerty expressed optimism about the bill's potential impact, stating that it positions the United States as a global leader in cryptocurrency. He emphasized that the GENIUS Act would enable businesses and individuals to settle payments almost instantaneously, a significant improvement over the current system that can take days or even weeks. The bill initially faced challenges, failing a cloture vote in May due to Democratic opposition linked to U.S. President Donald Trump's ties to the cryptocurrency sector. The Trump family holds a substantial interest in World Liberty Financial, which launched its own USD1 stablecoin earlier this year. The future of the stablecoin legislation remains uncertain in the House, where Republicans hold a narrow majority. President Trump's AI and crypto advisor, David Sacks, indicated in May that the president would support the bill if passed by a Republican-led Congress. If stablecoins are integrated into a U.S. regulatory framework, it could pave the way for companies to issue their own tokens. Major corporations like Apple, Google, and Airbnb are reportedly exploring this possibility, while two U.S. senators have questioned whether Meta might follow suit if the bill is enacted. Treasury Secretary Scott Bessent highlighted the potential growth of the stablecoin market, projecting it could reach $3.7 trillion by the decade's end, contingent on the GENIUS Act's passage. Meanwhile, the House is also considering the CLARITY Act, which aims to establish clear market structure rules for digital assets. This legislation has passed through key committees and awaits a floor vote, though it faces resistance from some Democrats concerned about President Trump's cryptocurrency connections. Bartlett Naylor, a financial policy advocate for Public Citizen, criticized the legislative efforts, arguing they overlook what he describes as Trump's significant conflicts of interest in the crypto industry. Naylor contends that these bills could legitimize questionable practices under the guise of national interest, raising concerns about potential corruption.