GENIUS Act Blocked in Senate Amid Opposition and Missing Consensus
Bill on Stablecoin Regulation, GENIUS Act, Faces Setback in U.S. Senate Proceedings
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, introduced by Senator Bill Hagerty (R-TN) to establish rules for stablecoin issuers, has hit a roadblock in the U.S. Senate. Falling short of the essential 60 votes for cloture, the bill has failed to move forward.
Initially, the GENIUS Act received some support across party lines during committee reviews. However, over the weekend, a group of Democrats expressed concerns, leading to their withdrawal of full endorsement. Concerns centered on the need for tighter anti-money laundering safeguards, oversight of foreign issuers, and measures to secure the financial system's integrity.
As Senator Ruben Gallego (D-AZ), one of the more crypto-friendly voices, noted, negotiations to reach an agreement occurred earlier in the week. Despite this, the request for more time to refine the bill was rejected, leaving the path forward unclear.
"I went to the floor and asked for more time to negotiate, without delaying the bill's timeline for final passage. Republicans refused," Gallego lamented. He remained optimistic, stating, "I will always be willing to continue to work on bipartisan stablecoin legislation. America must lead in this space and consumers deserve to be protected."
On Thursday, the Senate took the bill to a cloture vote, which failed to reach the necessary 60 votes. Without bipartisan cooperation, the GENIUS Act remains stalled, with no immediate path to revival.
Pro Tip:Stay updated on the latest developments surrounding the GENIUS Act and how they may impact the stablecoin landscape. The progress of this legislation could significantly shape the regulatory environment for digital assets in the United States.
- Amidst the opposition and lack of consensus, discussions about incorporating tighter anti-money laundering safeguards, strengthened oversight of foreign issuers, and measures to enhance financial system integrity into the GENIUS Act have gained prominence, given the concerns raised by some Democrats.
- In the tech-driven business world of finance, the stalled GENIUS Act underscores the challenges of crafting legislation that balances innovation with regulations, highlighting the need for continued dialogue and collaboration between lawmakers from both political parties.
