GENIUS Act Passes the Senate, Paving the Way for Stablecoin Regulation

After overcoming the Democratic-led filibuster, lawmakers can now continue debating and could pass the bill. If the GENIUS Act became law, it would establish the first set of federal regulations for stablecoins.

Senators in the United States Senate voted 66-32 to advance the GENIUS Act, a key part of regulating stablecoins, after overcoming a Democratic-led filibuster on Wednesday.

What Happened: Senators voted to move the bill to the next stage of consideration, where they can debate and pass it. If the GENIUS Act becomes law, it will set the first federal rules for stablecoins. The bill is now in the stage where the Senate can debate and amend it.

If passed, the GENIUS Act will oversee stablecoins, which are used by 1.1% of the U.S. dollar in circulation. The bill may bring trillions of dollars in liquidity to the cryptocurrency market, making it more reliable and trustworthy for everyday use.

Proponents of the GENIUS Act believe that regulating stablecoins is essential for the long-term development of decentralized finance (DeFi) and blockchain technologies.

“The GENIUS Act is a bipartisan bill that would provide clear and consistent regulation for stablecoins, promoting innovation and stability in the digital asset ecosystem,” a spokesperson for Senate Banking Chairman, Democrat Tim Scott of South Carolina, said in a statement.

"This legislation is a key priority for Chairman Scott, and we are grateful for the bipartisan support that has advanced the bill to the next stage of consideration."

Why Is This Important: Analyst Dan Gambardello expressed his belief that the GENIUS Act will have a positive impact on the industry.

"If the GENIUS Act passes, and it seems like it will, get ready for a flood of money to pour into the crypto industry," Gambardello stated.

Broad adoption of cryptocurrencies could become a reality if stablecoins are regulated properly, which may open up possibilities for products like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) to be used more easily by the average consumer.

Some experts believe that this bill could be the key to crypto’s future success by making it more accessible and understandable.

Given the increasing role of cryptocurrencies, the GENIUS Act may have implications for the economy as a whole. Experts predict that it could boost U.S. GDP by 4.2% to 5.2%, create more than 7 million jobs, and raise the annual income of families of four by up to $13,000.

These outcomes should foster increased growth, leading to greater advancements in digital assets and various types of technology.