According to one lite Tweet, the U.S. Senate just scored a massive win for all things crypto. In return, they voted for the GENIUS Act with a strong bipartisan 68-30 vote. This new legislative proposal is intended to revolutionize the future of stablecoins. Treasury Secretary Scott Bessent has already projected that this sector will grow almost eight times, crossing $2 trillion, in the next few years. The legislation focuses on the stablecoin market, which currently has about 99% of all stablecoins pegged to the U.S. dollar.
For the first time, the GENIUS Act specifically places limits on non-financial large tech companies. They’re not able to directly issue stablecoins without pairing up with regulated financial institutions. This important provision means that only well-established financial institutions will be the ones issuing any future stablecoins. Realizing this blind spot increases consumer protection and strengthens market stability.
The bill’s passage is being hailed as a major victory for the crypto industry. And the crypto sector has plowed a significant $250 million into the 2024 elections. This financial support has so far earned them historic advances in the still competitive political landscape. That funding largely elected what many observers are calling the most pro-crypto Congress in U.S. history.
Senate Democrats tried repeatedly to add amendments to keep President Trump from making a profit on his crypto endeavors. The final legislation moves aggressively in the opposite direction. It applies to members of Congress and their immediate families, explicitly prohibiting them from doing the same. This provision of the bill has received intense backlash from conservative legislators.
Senator Jeff Merkley expressed his discontent, accusing Republican lawmakers of “rubberstamping Trump’s crypto corruption.” The harsh criticism underscores what’s become an ongoing struggle between two very different political philosophies around crypto regulation and enforcement.
Senator Kirsten Gillibrand voiced her support for the bill, stating, “The GENIUS Act will protect consumers, enable responsible innovation, and safeguard the dominance of the U.S. dollar.” Her comments reveal increasing consensus among advocates. They argue that regulated stablecoins could increase financial stability, including through the provision of a safer payment option, and promote technological innovation in digital commerce.
Senator Cynthia Lummis were some challenges in the legislative process that developed. “We thought it would be easiest to start with stablecoins. It has been extremely difficult. I had no idea how hard this was going to be,” she remarked. Senator Lummis has called for using stablecoins as a building block, or floor, of any foundations of more general, wide-ranging regulation of cryptoassets.
The GENIUS Act now moves to the House of Representatives, where lawmakers are considering their own version of a stablecoin bill known as STABLE. As this legislative process unfolds, stakeholders in the crypto industry are closely monitoring developments that could redefine their operational landscape.
Beyond potential regulatory implications, companies within the tech sector have already started to pivot in response to this changing landscape. Shopify just introduced payments backed by USDC. This latest action, made possible by collaborations with Coinbase and Stripe, demonstrates how stablecoins are making headway into everyday commerce.
As the regulatory framework surrounding cryptocurrencies continues to evolve, several prominent figures are under scrutiny due to their financial interests in this burgeoning market. Former President Donald Trump is thought to have almost $1 billion in cryptocurrency. Ethics advisers say this enormous sum forms the bedrock of his much-publicized total net worth of $5.6 billion. Arguably, Trump profited more than $57 million just in 2024 so far from other token sales associated with World Liberty Financial.
At current prices, that means Trump holds just under 16 billion WLFI governance tokens. Collectively, these tokens are likely to be worth almost $1 billion on paper at their peak. These financial ties have created serious ethical concerns over how closely intertwined politics and cryptocurrency have become.