The US Senate is gearing up to vote on the GENIUS Act next week, a bill that focuses on stablecoins. The bill has undergone revisions to address concerns raised by Democratic lawmakers, causing it to stall last week.
Among the key changes introduced into the GENIUS Act are strengthened clauses around financial integrity, consumer protection, and ethical standards. The updated bill also includes language targeting the influence of large technology companies and foreign entities in the digital currency space.
One of the most significant amendments is a provision that prohibits non-financial, publicly traded companies from issuing stablecoins unless they meet strict conditions. These conditions include clear frameworks for risk management, data privacy, and fair business conduct. The aim is to maintain the separation between banking and commerce, curtailing the financial ambitions of Big Tech companies like Meta, Google, Amazon, and Microsoft from launching digital currencies that could bypass regulatory scrutiny.
The revised bill also clarifies that stablecoins do not carry federal insurance protections, reducing the risk of consumer confusion and financial fraud. These changes are intended to establish clear legal boundaries while preserving the role of traditional financial institutions.
As the Senate prepares for the upcoming vote, crypto advocacy groups have intensified their efforts to push the legislation through. Stand With Crypto, a Coinbase-backed advocacy group, has launched a campaign encouraging constituents to email their senators in support of the bill. The Blockchain Association has also voiced its support, stating that moving the bill forward would bring us closer to creating a bipartisan framework for stablecoins.
Coinbase CEO Brian Armstrong has joined the push, calling on lawmakers to create clear rules for crypto in America. He emphasized that 52 million Americans have used crypto and are looking for regulatory clarity.
With these developments in play, the crypto industry is mobilizing ahead of the Senate vote, aiming to secure a regulatory framework that supports innovation while safeguarding consumer interests.