The GENIUS Act is back

Crypto lawyer John Deaton thinks failure to pass it now could freeze real progress on crypto laws until after the midterm U.S. elections — and maybe longer.

The GENIUS Act, a bipartisan effort to bring stability to the crypto landscape, is returning to the Senate floor after a period of stasis. While hailed as a modest step toward crypto regulation, the bill’s fate remains uncertain.

Despite the bipartisan support and the urgency expressed by senators from both parties to quickly bring the bill back, critics are not holding back. Senator Elizabeth Warren has voiced concerns that the bill could pave the way for tech giants to monopolize the payments sector, thereby stifling smaller players.

The bill, which began in the House, is an attempt to create a framework for stablecoins tied to fiat currency, aiming to prevent a broader crackdown on crypto. However, it has faced persistent roadblocks.

Crypto lawyer John Deaton, known for his representation of XRP holders, believes that failure to pass the GENIUS Act could have broader implications, setting back progress on crypto legislation until after the midterm U.S. elections, if not longer.

Deaton highlights the narrowest House majority since 1931 and the anticipation of the usual midterm power shift. He asserts that this window is rapidly closing. If the GENIUS Act, which Deaton describes as uncontroversial and in the national interest, fails to pass the Senate, then more complex crypto bills will not be on the agenda.

Deaton criticizes the bill for omitting interest payments for stablecoin holders, a move designed to appease banks and an adjustment made largely to accommodate the banking lobby. This omission is evident in the final bill.

The result, he claims, is a bill that shies away from controversy but leaves retail investors out in the cold.