Senate Delays Stablecoin Bill, Second Vote Approaching

The U.S. Senate postponed voting on the GENIUS Act, led by Senators Bill Hagerty and Kirsten Gillibrand, scheduled for last week, due to unexpected objections.

The delay highlights ongoing debates and potential market shifts as stakeholders await the next procedural vote.

Senate Faces Objections on GENIUS Act Details

The GENIUS Act, aiming for a U.S. stablecoin regulatory framework, faced postponement in the Senate. Senators Bill Hagerty and Kirsten Gillibrand spearheaded the effort amid consumer protection and national security debates.

Numerous Senate Democrats expressed last-minute objections, prompting adjustments in the bill’s language. The proposed legislation aims to limit big public companies as stablecoin issuers, affecting platforms like Meta and X.

Postponement Stirs Uncertainty Among Crypto Investors

The adjournment has immediate implications for market participants and institutional investors seeking regulatory clarity. While no direct on-chain reactions have been noted, the political discourse suggests extensive future volatility.

The legislation, if passed, may amend the landscape for U.S.-domiciled stablecoin issuers and DeFi protocols. Broader cryptocurrency assets could experience shifts, awaiting stability from regulatory outcomes.

Stablecoin Regulation Efforts Historically Stall

Previous efforts for stablecoin regulation in Congress have faltered, often leading to temporary market volatility. Past bills have struggled to achieve bipartisan support, impacting stablecoin liquidity in DeFi.

The upcoming vote poses risks tied to historical data, where significant decisions have historically led to market changes. Key players anticipate a robust regulatory outcome to drive legal certainty.

“Next week, the Senate will make history when we debate and pass the GENIUS Act that establishes the first ever pro-growth regulatory framework for payment stablecoins.” — Senator Bill Hagerty (R-TN)