If the Stablecoin bill GENIUS Act does not pass the U.S. Senate

If the Stablecoin bill GENIUS Act does not pass the U.S. Senate, there may be no major crypto legislation before 2029

The U.S. Senate is set to vote on the Stablecoin bill GENIUS Act this week, and if it fails, there may be no major crypto legislation passed before 2029, according to XRP lawyer John E. Deaton.

The lawyer, known for his involvement in the XRP legal case, said on social media that the Senate’s inaction could delay the urgently needed regulatory clarity for the digital asset space.

If lawmakers cannot pass the non-controversial bill that serves national interests, then it is unlikely that other more complex crypto bills such as market structure legislation, the Lummis-Gillibrand bill, or tax reforms will succeed anytime soon.

The GENIUS Act, led by Senator Bill Hagerty, aims to create a legal framework for issuing stablecoins in the United States. The bill ensures issuers hold high-quality reserves to protect users and promote transparency.

During an interview on CNBC’s “Squawk Box,” Senator Hagerty stated that the Stablecoin bill will bring regulatory clarity and support dollar-backed innovation in the United States.

Lack of clear rules has pushed many crypto-related projects offshore, but the bill intends to reverse that trend by creating a clear regulatory path for stablecoin issuers.

The use of SEC enforcement actions to regulate digital assets has caused confusion in the market. By establishing a formal structure, the bill may help both consumers and businesses operate with better legal understanding.

However, despite the worries, Senator Kirsten Gillibrand has predicted the Stablecoin regulation may get passed this week.

Several figures in the digital asset space have voiced strong support for the Stablecoin bill GENIUS Act despite allegations of fraud and corruption against US President Donald Trump.

Faryar Shirzad, Chief Policy Officer at Coinbase, stated that passing stablecoin legislation is a “national priority.”

The U.S. must lead in blockchain-based finance and ensure that stablecoins tied to the U.S. dollar remain dominant.

“Stablecoins can put pressure on old financial systems, but competition is necessary,” Shizad posted on X. He compared the current moment to the introduction of money market funds in the 1970s and 1980s and said the banking sector can adapt, as it did then.

Shirzad also mentioned that the GENIUS Act would strengthen the dollar’s role globally and keep the U.S. at the center of international finance. He stressed that the bill goes beyond technology and also supports fiscal strength and national strategy.

Though the Stablecoin bill has bipartisan support, obstacles still exist. Senator Hagerty noted that opposition often comes from lawmakers who favor centralized financial control.

Critics, including Senator Elizabeth Warren, have urged caution and questioned whether the bill would increase financial risks or reduce regulatory authority.

XRP lawyer John Deaton said the bill does not allow stablecoin holders to receive yield, which he sees as a shortcoming. However, he acknowledged that any yield-bearing version would likely face resistance from banks due to competition with deposits. “The Bank Lobby is real,” he wrote.

The Senate is expected to vote on the bill this week. If the legislation fails, it may reduce the momentum for other crypto-related efforts.

According to XRP lawyer John Deaton, without stablecoin regulation in place, broader reforms such as BitBonds or crypto tax laws may not progress until the next administration.