Senate Set to Resume Stablecoin Regulation Efforts After Brief Halt
After a sudden bump in the road for the U.S. legislative effort to regulate stablecoin issuers, the Senate is gearing up to move forward once again with a revised version of the bill. The new language in the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act is expected to see some procedural movement as early as Thursday.
Renewed Efforts
Last week, the Senate’s push for stablecoin regulation faced obstacles when Democrats raised concerns about President Donald Trump’s personal crypto business interests. However, negotiations have continued, and lawmakers are reportedly close to reaching an agreement on updated text for the bill.
Key Provisions
The GENIUS Act aims to establish a federal regulatory framework for cryptocurrencies tied to the value of other assets, such as Tether’s USDT and Circle’s USDC. A similar bill is also making its way through the House of Representatives.
Previous Setback
Earlier this year, a previous version of the bill received bipartisan support in the Senate Banking Committee. Despite initial optimism in the crypto sector, the bill’s progress was halted when it failed to advance to the Senate floor due to a lack of support for cloture.
Potential Conflict
One of the main points of contention for Democrats was President Trump’s involvement in the crypto industry, particularly his ties to stablecoin issuers. While the updated bill is unlikely to directly address this issue, it does include strong ethics requirements.
Optimistic Outlook
Senator Gillibrand expressed optimism about the bill’s future and hinted at a potential vote in the near future. Senator Lummis also emphasized the importance of focusing on regulatory structure rather than distractions related to individual personalities.
Continued Negotiations
Bo Hines, Trump’s executive director for digital assets, confirmed that negotiations are ongoing, and there is a possibility of a vote on Thursday. He remains hopeful that the legislation will continue to progress.