US Senate Votes To Advance the GENIUS Act To A Final Vote
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The US Senate recently voted on the long-awaited stablecoin bill, commonly known as the GENIUS Act. With a vote of 68-30 this Wednesday, June 11, the bill is ready to reach the final vote, which may occur as soon as next Monday. If so, it will bar any deal between party leaders that aims to expedite the process.
The act is formally known as the Guiding and Establishing National Innovation for US Stablecoins Act. If it becomes law, it will require all stablecoins to be fully backed by the US dollar or similarly liquid reserves. Furthermore, the authorities would conduct annual audits for stablecoin issuers whose coins have a market value exceeding $50 billion.
The bill also includes provisions on oversight of foreign issuers, which is why it will be quite impactful if it passes all stages and becomes law. Yesterday’s vote marked another successful step on that road.
While several Democrats backed the move, many others voted against it, including Senate Minority Leader Chuck Schumer, Amy Klobuchar, and Elizabeth Warren. They explained that they still have concerns regarding regulatory loopholes, money laundering safeguards, as well as potential conflicts of interest tied to the US President Donald Trump.
Trump’s Ties To Crypto Make The Bill Controversial
The Trump administration has backed the bill, with senior White House advisors stating that they recommend the president sign it if it reaches his desk. Trump previously pushed for stablecoin legislation before the August recess, as he believes it is an important part of the broader push to bring crypto finance into the mainstream.
Tim Scott, the Senate Banking Chair and one of the bill’s co-sponsors, described it as a win for national security and innovation. He credited bipartisan cooperation for getting the bill this far, and this sentiment was echoed by the Majority Leader, John Thune.
Thune said that the act could help the country become a global leader in digital assets. On the other hand, Warren opposed the bill, warning that it needs further amendments, or it could leave the door open to “presidential corruption through crypto.”
Warren also criticized Trump’s ties to the DeFi venture World Liberty Financial, which is run by his family, and which recently rolled out its own stablecoin. “Through his crypto business, Trump has created an efficient means to trade presidential favors for hundreds of millions, perhaps billions, from foreign governments and big corporations,” Warren argued, adding that the senate would enable it if it passes the Act.
