The "Guidance and Establishment of the U.S. Stablecoin National Innovation Act" (referred to as the GENIUS Act) is currently facing a critical vote in the U.S. Congress, which could have significant implications for the cryptocurrency industry.
If the U.S. Senate passes the GENIUS Act on Tuesday, it will mark a step forward for the U.S. in regulating stablecoins, representing a major victory for the crypto industry and the Trump administration that supports the legislation. The next stop for the bill is the House of Representatives, where it will undergo further scrutiny by lawmakers.
On June 11, the Senate voted 68 to 30 to advance the bill, opening the possibility for amendments before the final vote on the GENIUS Act. Several Democrats joined most Republicans in winning the vote to end debate, echoing President Donald Trump's desire to make the U.S. the "crypto capital of the world."
In the lead-up to the vote, industry voices expressed optimistic outlooks. Coinbase Chief Legal Officer Paul Grewal shared positive views on the X platform before the vote, emphasizing that the bill could bring regulatory clarity. However, not everyone supports the legislation.
Critics argue that the GENIUS Act lacks sufficient safeguards, particularly regarding the risks of self-dealing by entities authorized to issue stablecoins. Senator Elizabeth Warren is one of the most outspoken opponents, warning that the bill could "actively facilitate" abuses related to Trump's crypto business.
A key amendment to the legislation aims to prevent elected officials and their families from issuing stablecoins, addressing some concerns about conflicts of interest.
If implemented, the GENIUS Act could significantly reshape the landscape of U.S. crypto regulation. Industry stakeholders told Cointelegraph that the legislation could help solidify the dollar's role in the digital economy and lay the groundwork for a more structured global financial framework.
The GENIUS Act will establish a regulatory framework for stablecoins, allowing issuers to register with the U.S. government. Additionally, issuers will be required to provide a 1:1 backing for stablecoins, undergo regular audits, and comply with anti-money laundering regulations.
Roshan Robert, CEO of OKX U.S., stated that the GENIUS Act is a "strong signal" of the U.S. government's pragmatic approach to digital asset innovation. The bill creates a "critical bridge" for traditional finance to explore blockchain-driven payments and settlements.
Roshan said, "For OKX, clear regulation in key markets like the U.S. enables us to build responsible and transparent infrastructure for global users. The GENIUS Act not only supports licensed innovation but also lays the foundation for interoperability between centralized and decentralized systems—something we believe is an inevitable future."
Stablecoins are often seen as a crucial bridge between traditional finance and digital assets. These tokens, which are pegged to fiat currencies (most commonly the dollar), could enable people worldwide to make cross-border remittances easily and at lower costs, as well as pay for goods at various merchants.
The legislation could also lay the groundwork for the regulation of decentralized, programmable currencies, potentially impacting the prospects of U.S. Central Bank Digital Currency (CBDC).
Mike Cahill, CEO of Douro Labs, stated, "The stablecoin bill is equally important. With major financial institutions already exploring issuance, clear federal guidelines will legitimize stablecoins as a new category of programmable currency—integrating into payments, settlements, and even financial management."
He added, "If the U.S. can achieve this, it will not only lead the crypto market but also write the rulebook for the next generation of the global financial system."
Since Trump imposed tariffs on trade partners, discussions about de-dollarization (the potential for the world to move away from reliance on the dollar as the global reserve currency) have intensified. Supporters of the bill argue that it could enhance the dollar's position, as most stablecoins are pegged to the dollar, potentially increasing its influence in the digital economy.
According to DefiLlama, the two largest stablecoins in the crypto space are both pegged to the dollar—Tether's USDT and Circle's USDC. The total market capitalization of these two tokens reaches $217.5 billion, accounting for 86.4% of the total stablecoin market cap of $251.7 billion.
Bill Sebell, Executive Director of the XDC Foundation, stated, "The discussion about de-dollarization overlooks the bigger picture: dollar-backed stablecoins are a new financial power tool for the 21st century." If the GENIUS Act passes, "anyone with a smartphone could hold compliant digital dollars, increasing the reach and relevance of the dollar at a time when critics predict its decline."
Related: Fairmint Proposes to SEC: A Blockchain Regulatory Framework Should Be Established for Private Markets
Original article: “The GENIUS Act Could Enhance Dollar Strength and Write the 'Rulebook' for the Global Financial System”
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