The Ongoing Battle Over the GENIUS Act: A Tussle in the Senate
Controversial Amendments Pile Up for GENIUS Act - Nearly 60 Proposed Changes Gaining Momentum
The GENIUS Act, or the Guiding and Establishing National Innovation for U.S. Stablecoins Act, has become a hot topic in the U.S. Senate, with recent developments pushing it front and center. On May 20, 2025, the Senate voted 66-32 to proceed with a revised version of the bill, following weeks of intense bipartisan negotiations.
The Genesis of Controversy
The bill has been a subject of debate due to over 60 proposed amendments, sparking fierce negotiations between Senate Republicans and Democrats. Journalist Eleanor Terrett reported the amendments' impact, turning the GENIUS Act into a legislative game-changer.
While numerous amendments have been applied, ongoing discussions continue, focusing on provisions addressing potential conflicts of interest. The amendments have cast the GENIUS Act in a new light, underscoring its growing significance across party lines.
Evolution of the Bill
A crucial aspect of the bill grants the Treasury Secretary the power to exempt stablecoin issuers from regulations during emergencies. Recent amendments demand further explanation from the Secretary to key congressional committees whenever this power is invoked.
Moreover, the bill has undergone modifications to enhance oversight. Foreign stablecoins recognized under the bill now require public justification, with the Stablecoin Certification Review Committee holding the authority to veto these decisions.
Concerns and Limitations
The latest revisions to the GENIUS Act reflect growing concerns over regulatory authority and potential conflicts of interest. A recent amendment mandates foreign jurisdictions to comply with stringent anti-money laundering controls and enforcement mechanisms, in addition to comparably robust regulations for stablecoin issuers.
However, the bill's structure remains a subject of debate, particularly the Federal Treasury's dual role as a debt issuer and a regulator of stablecoin entities heavily investing in U.S. Treasuries. A resolution to this dilemma remains elusive.
The Road Ahead
With over 60 amendments still under negotiation and bipartisan support essential for progress, the GENIUS Act's journey is far from over. The coming days will play a crucial role in determining whether the bill advances or stalls amid procedural hurdles, setting the stage for a future of stablecoin regulation in the United States.
As the bill moves to the House of Representatives for further deliberation, the priorities are clear: construct a regulatory environment that nurtures innovation while protecting consumers and ensuring financial stability, all while avoiding toxic amendments.
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- The GENIUS Act, in its revised form, has attracted attention from various sectors, including crypto finance, business, politics, and general news, given its potential impact on stablecoins and the U.S. financial landscape.
- Bitcoin enthusiasts closely follow the ongoing debates surrounding the GENIUS Act, as forks could affect the stability of cryptocurrencies and the entire digital mining industry.
- The GENIUS Act, with its push for increased oversight, has raised concerns among stakeholders in the Ethereum mining community about potential regulatory burdens and the lack of a clear path for compliance.
- As the GENIUS Act progresses through the House of Representatives, analysts are keep an eye on whether it will succeed in creating a balanced regulatory environment, fostering innovation while ensuring consumer protection and financial stability, avoiding undesirable amendments that may disrupt the existing crypto and finance business models.
