US Senate Rebuffs Stablecoin Innovation Act: What This Means for Cryptocurrency Regulation

On May 9th, COINOTAG reported that the U.S. Senate narrowly rejected the Stablecoin Innovation and Safety Act, commonly referred to as the GENIUS Act, with a 48-49 vote. This pivotal legislation aimed to create a comprehensive regulatory framework for the issuance of stablecoins, which are digital assets designed to maintain parity with the U.S. dollar and other fiat currencies. The bill required a supermajority of 60 votes to advance, but opposition from Democratic senators hindered its progress. Within the current Senate, Republicans hold a slight advantage, with 53 seats compared to 47 Democrats. Notably, Democratic lawmakers advocated for amendments that included restrictions on executive officials, such as former President Trump and his family, from engaging in cryptocurrency trading, as well as enhanced anti-corruption provisions. Modifications made post-committee approval retained state control over foreign-issued stablecoins and broadened the oversight of atypical transaction patterns among stablecoin stakeholders.