US Senate Passes Historic Crypto Regulation Bill

The US Senate passed the GENIUS Act, the first major bill targeting stablecoin regulation, with bipartisan support in Washington, D.C.

The passage marks a critical step toward stablecoin oversight, potentially reshaping the stablecoins market with shifts expected shortly.

GENIUS Act Aims to Regulate Leading Stablecoins

The US Senate passed the GENIUS Act aimed at regulating stablecoins. Spearheaded by Sen. Bill Hagerty, the bill seeks to bring clarity to digital assets regulation.

Sen. Hagerty, alongside bipartisan partners, led the effort towards establishing a regulatory framework for stablecoins like USDC, USDT, and DAI. This measure addresses a previously unregulated aspect of the cryptocurrency market. As Sen. Bill Hagerty stated, “We need a clear regulatory framework for digital assets, especially stablecoins.”

Market Impact from Bipartisan Crypto Regulation

The bill’s passage suggests immediate effects on the stablecoins market, potentially influencing liquidity and investment flows. Bipartisan Senate support reflects a level of consensus on regulatory necessity.

Political and market responses are anticipated, with emerging financial implications for cryptocurrencies, particularly in terms of institutional adoptions and potential shifts in digital asset regulations.

GENIUS Act’s Distinction from Past Crypto Bills

Historically, regulatory attempts such as Lummis-Gillibrand frameworks generated optimism but lacked progression. The GENIUS Act’s passage contrasts these previous efforts with clear advancement.

Experts anticipate potential reforms similar to past legislative successes in financial oversight influencing DeFi protocols and crypto collateral engagements.