The GENIUS Act, a groundbreaking stablecoin bill, recently passed the Senate with bipartisan support, paving the way for potential regulation of the crypto industry in the US. However, the question on everyone’s mind is: when will it officially become a law?
The next step for the GENIUS Act is to pass through the House of Representatives. The House has two main options: they can either swiftly adopt the Senate version of the bill to avoid delays, or they can push forward their own stablecoin bill, the STABLE Act, and then work to reconcile any differences through a conference committee. The pressure is on for the House to act before the August recess, as timing is crucial in moving this legislation forward.
The Senate vote of 68-30 demonstrated significant bipartisan support for the GENIUS Act, indicating a consensus on the need for regulatory measures and safeguards for stablecoins. The House is cautiously optimistic about the bill’s prospects, with positive indicators such as Senate momentum and support from key House Republicans. However, there are also friction points to consider, including skepticism from some House Democrats and the alternative STABLE Act proposed by Maxine Waters.
If the House makes modifications to the bill, a conference committee will be formed to negotiate a unified text that addresses discrepancies between the House and Senate versions. Once both chambers approve the final reconciled bill, it will then be sent to President Trump for his signature. The president has 10 days to sign the bill into law, after which agencies like the Fed, OCC, FDIC, and CFTC will have 180 days to issue final rules for oversight, reserve requirements, audits, licensing, disclosures, and enforcement protocols.
The timeline for the GENIUS Act is crucial, as failure to act by August could result in delays pushing the resolution into late 2025 or even 2026. Speed is of the essence if lawmakers want to capitalize on bipartisan support and ensure that the crypto industry is regulated in a timely manner.
In conclusion, the GENIUS Act represents a significant step towards regulating stablecoins in the US. The next few months will be crucial in determining the fate of this legislation and shaping the future of the crypto industry. Stay tuned for updates as the bill progresses through the House and towards potential enactment into law.