The Voice News: The U.S. Senate has taken a key step toward regulating the cryptocurrency industry with the advancement of the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act). The bipartisan bill, which passed a procedural vote on May 19, lays out the first regulatory framework for stablecoins—cryptocurrencies tied to stable assets like the U.S. dollar.
Though final approval is pending and unlikely before the end of May, the bill is seen as a significant win for the crypto industry. Supporters say it would help bring stablecoins into the mainstream by providing legal clarity, protecting consumers, and establishing standards for digital payments.
Austen Jensen of the Retail Industry Leaders Association said the bill could “lead to frictionless payments” and expand financial access. Sarah Milby from the Blockchain Association added that the bill strengthens U.S. leadership in digital assets.
What the GENIUS Act Proposes:
Stablecoin issuers must hold reserve assets to ensure customer withdrawals.
Issuers must prioritize customer repayment in bankruptcy.
Compliance with anti-money laundering and anti-terrorism laws is required.
Members of Congress and senior executive officials are banned from launching stablecoins while in office.
Criticism and Controversy:
Opponents, including Senator Elizabeth Warren, argue the bill lacks strong consumer protections and could benefit President Donald Trump. Trump-backed venture World Liberty Financial recently launched USD1, now the world’s fifth-largest stablecoin. Critics fear the bill could expand the reach of Trump’s crypto interests and create financial risks.
Warren warned that the bill could lead to a future financial crisis and said it enables the use of stablecoins for illegal activities. “This weak bill is worse than no bill at all,” she stated.
Despite the debate, the GENIUS Act marks a major milestone in the effort to bring structure and accountability to the fast-evolving crypto market.