Stablecoin Revolution or Regulatory Hype? Senate’s GENIUS Act Vote Looms!
Senator Hagerty predicts historic Senate vote on GENIUS Act to regulate stablecoins! Is this crypto’s big break?
Stablecoin Revolution or Regulatory Hype? Senate’s GENIUS Act Vote Looms!
Senator Bill Hagerty (R-TN) boldly claimed on May 17, 2025, that the Senate will “make history” next week by passing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bipartisan bill to regulate dollar-pegged stablecoins. Co-sponsored by Senators Tim Scott (R-SC), Kirsten Gillibrand (D-NY), Cynthia Lummis (R-WY), and Angela Alsobrooks (D-MD), the bill aims to set clear rules for issuers like Tether ($151B market cap) and Circle ($61B). Despite Hagerty’s optimism, the bill faces a tough 60-vote hurdle after a 48-49 defeat on May 8.
What’s the GENIUS Act About?
The GENIUS Act defines stablecoins as digital assets tied to the U.S. dollar, requiring 1:1 reserves, banning algorithmic tokens, and enforcing anti-money-laundering rules. Issuers with over $10 billion in market cap face Federal Reserve or OCC oversight, while smaller ones can opt for state regulation. Hagerty says it’ll boost U.S. dollar dominance and innovation, with posts on X echoing excitement for stablecoin adoption by firms like Mastercard.
The GENIUS Act defines stablecoins as digital assets tied to the U.S. dollar, requiring 1:1 reserves, banning algorithmic tokens, and enforcing anti-money-laundering rules. Issuers with over $10 billion in market cap face Federal Reserve or OCC oversight, while smaller ones can opt for state regulation. Hagerty says it’ll boost U.S. dollar dominance and innovation, with posts on X echoing excitement for stablecoin adoption by firms like Mastercard.
Why It Matters
For crypto beginners, stablecoins offer stability in a volatile market, powering $33.6 trillion in yearly transactions. This bill could legitimize them, attracting mainstream investors but tightening oversight. However, Democrats, wary of loopholes and Trump’s crypto ventures, demand stronger consumer protections, making passage uncertain. A win could cement U.S. crypto leadership; a flop might stall progressş
For crypto beginners, stablecoins offer stability in a volatile market, powering $33.6 trillion in yearly transactions. This bill could legitimize them, attracting mainstream investors but tightening oversight. However, Democrats, wary of loopholes and Trump’s crypto ventures, demand stronger consumer protections, making passage uncertain. A win could cement U.S. crypto leadership; a flop might stall progressş
What’s Next?
Monday’s vote is make-or-break. Amendments addressing anti-money-laundering and ethics may sway Democrats, but time’s tight. Investors should watch stablecoin markets and secure their assets amid regulatory shifts.
Monday’s vote is make-or-break. Amendments addressing anti-money-laundering and ethics may sway Democrats, but time’s tight. Investors should watch stablecoin markets and secure their assets amid regulatory shifts.
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The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
