U.S. Senate to Vote on GENIUS Act for Stablecoin Regulation

The U.S. Senate will vote on the GENIUS Act, focusing on stablecoin regulation, on June 17.

The vote could reshape the regulatory landscape for stablecoins, affecting market dynamics and investor strategies.

U.S. Senate Prepares for GENIUS Act Vote

U.S. Senate leaders are preparing to vote on the GENIUS Act, aiming to regulate stablecoins. This development follows extensive lobbying by credit unions and financial institutions.

Senator Bill Hagerty played a vital role by negotiating amendments to the Act. The GENIUS Act addresses supervisory authority for non-bank issuers, aligning it with industry standards. “Negotiating a substitute amendment that eases partisan objections is crucial for moving forward with the GENIUS Act,” said Senator Bill Hagerty, U.S. Senator.

GENIUS Act to Redefine Stablecoin Issuer Operations

The passage of the GENIUS Act could significantly alter stablecoin issuers’ operations, impacting entities like Tether and Circle. Industry stakeholders are closely monitoring these potential changes.

Financial markets could see shifts in Total Value Locked (TVL) and liquidity in stablecoin markets. Investors might alter strategies to align with new regulatory frameworks.

Regulatory Trends Reflecting Global Policies

Previous regulatory efforts, such as the STABLE Act, laid groundwork for the GENIUS Act. Similarly, the EU’s MiCA regulation reflects global trends in regulating digital assets.

The GENIUS Act’s outcomes might follow historical patterns of increased regulation. Institutional involvement and investment strategies could adapt, influencing the broader cryptocurrency market.