The advance of the Genius Act in the Senate marks a turning point on the road to a clear regulation of the stablecoins in the US, with deep implications for both the crypto industry and for national politics.
The United States Senate took a key step towards regulation of the Stablcoins market by approving a procedural vote on Monday that enables the treatment of Genius Act, A legislative proposal aimed at establishing clear rules for these digital assets. Promoted by Republican senator Bill Hagerty, the project achieved overcome party divisions When obtaining the support of 16 Democratic senators, in a context of strong internal debates in Congress.
The approval was held by referents of the crypto sector. Brian Armstrong, CEO of Coinbase, described the progress as “a significant victory” for the industry and stressed the growing political recognition of blockchain technologies in Washington. From the company they insisted that it is time to leave behind partisan games and advance the substantive discussion of the text. Paul Grewal, legal director of Coinbase, warned that citizens expect a coherent regulation and that Congress should not miss this opportunity to provide certainty to an expanding market.
What does the project propose
The Genius Act proposes a specific regulatory framework for stablcoins, cryptocurrencies designed to maintain parity with fiduciary currencies such as the dollar. Among its provisions, the text includes operational standards, compliance requirements with current financial regulations and consumer protection measures. In addition, it incorporates supervision mechanisms under laws such as the Bank Secrecy Act, focused on the fight against financial crimes.
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However, the project is not exempt from controversies. The recent news that World Liberty Financial – a company linked to former president Donald Trump – plans to launch his own Stablecoin generated new tensions. Some Democratic senators who had initially supported the commission initiative decided to withdraw from the vote in the plenary. Senator Elizabeth Warren, a usual criticism of the crypto sector, warned that legislation could facilitate the participation of political figures in high -risk businesses, feeding potential conflicts of interest and corruption cases.
With a market that already exceeds 200,000 million dollars in circulation within the United States, the lack of a clear regulatory framework represents, for many analysts, a competitive disadvantage against countries that have already adopted specific regulations. The legislative discussion about the Genius Act promises to mark a before and after in the relationship between the crypto ecosystem and the American traditional financial system.
Source: Ambito
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