GOP Pushes GENIUS Act Vote Amid Democratic Opposition
- The GENIUS Act is set for a Senate vote on May 8, 2025.
- Democrats have reduced their support over anti-money-laundering concerns.
- The stablecoin market could face volatility if the Act doesn’t pass.
Republican lawmakers are set to bring the GENIUS Act to a Senate vote on May 8, 2025, amidst Democratic opposition and political maneuvering.
The GENIUS Act’s passage is crucial for establishing stablecoin oversight, with potential implications for the broader cryptocurrency market.
GENIUS Act Faces Bipartisan Political Hurdles
The GENIUS Act, introduced to modernize U.S. stablecoin regulation, faces significant political hurdles. Initially gaining bipartisan sponsorship, the act’s Democratic support has dwindled due to concerns over anti-money-laundering measures. Senator Bill Hagerty sponsors the bill, with backing from Senator Tim Scott and Senator Cynthia Lummis, who aim to expedite its legislative process. Democrats express dissatisfaction with the current bill version.
Stablecoin Market Braces for Potential Volatility
The stablecoin market, valued at around $243 billion, could see increased volatility without the GENIUS Act. Democratic criticisms highlight potential regulatory gaps without stringent measures. Investors remain cautious. Financial experts warn of potential regulatory setbacks affecting crypto bridges with traditional finance. Business leaders stress the need for comprehensive standards to encourage market growth and investor trust.
Regulatory Gridlock Threatens U.S. Crypto Leadership
Similar regulatory attempts have faced bipartisan divisions, reflecting challenges in adapting digital finance oversight. Past failures highlight difficulties in consensus-building for cryptocurrency legislation. “Failure to pass the GENIUS Act could jeopardize all remaining crypto legislation under consideration in 2025,” said Alex Thorn, Head of Research at Galaxy Digital. The act’s potential defeat could continue the trend of legislative gridlock in digital asset policy, posing risks to U.S. market leadership. Analysts foresee stalled crypto innovation without federal guidelines.
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