The guide and establishment of the national change for the US Stablecoins Act, known as the Genius Act, is now facing a major vote in the United States Congress, and the stakes for the cryptocurrency industry are high.
If the US Senate, the upper room of the country’s Congress, passed the Genius Act on Tuesday, it will move the country to a step closer to regulating Stablecoins, marking a major win for the crypto industry and for Trump management, supporting the law. The next stop of the bill is the House of Representative, where it is undergoing a thorough investigation from lawmakers.
The Senate voted 68-30 to advance the bill On June 11, the opening of the Genius Act to the amendments before a final vote. Many Democrats have joined most Republicans to win the cloture’s vote, along with some worshipers of US President Donald Trump’s desire to make the country “capital of the planet’s crypto.”
In the lead-up to the vote, the voices of the industry expressed a hopeful perspective. Coinbase Chief Legal Officer Paul Grewal sound A positive note on X leads the vote, featuring its potential to bring clarity to regulation. Not everyone is on board, however.
Critics argue that the Genius Act does not have sufficient care, especially around the potential for talking to themselves of creatures who are authorized to issue stablecoins. Senator Elizabeth Warren is among the most vibrant opponents, Warning That the bill can “actively facilitate” misuse tied to Trump’s crypto businesses.
Among the major amendments to the law is a provision aimed at prevents elected officials and their families from issuing stablecoinsone step intended to meet some of the concerns about conflicts of interest.
If realized, the Genius Act can significantly reshape the landscape for crypto regulation with us. Cointelegraph industry stakeholders say the law can help strengthen the role of dollars in the digital economy and put the foundation for a more structured global financial framework.
Related: Senators plan to change the Genius Act to meet Trump’s family’s stablecoin
A bridge between the tradfi and the blockchain
The Genius Act will establish a system of administration for Stablecoins, allowing those who providers to register with the US government. In addition, those who give are required to have 1: 1 backing for their stablecoins, deal with regular audits and submit to anti-money laundering regulations.
According to Roshan Robert, CEO of OKX US, the Genius Act is a “strong signal” that the US government is taking a pragmatic approach to changing digital assets. The law creates “an important bridge for traditional finances to explore the payments and settlements enabled by the blockchain.”
“For OKX, clear regulation in major markets like the US empowers us to generate responsible, transparent infrastructure for global users,” Robert said. “The Genius Act not only supports licensed changes but also puts the basis for interoperability between centralized and decentralized systems – a future we see that is inevitable.”
Stablecoins are often seen as a major bridge between traditional finances and digital assets. These fiat-pegged tokens, most of which are linked to the US dollar, can allow people around the world to easily send money to boundaries with fewer fees, and pay for goods to different merchants.
Related: What is the Genius Act? How it can restore US Stablecoin regulation
A ‘Rulebook for the next global financial system’
The law may also set a stage for the regulation of decentralized, programmed currency, which is potentially a blow to the prospects of a central digital currency (CBDC) in the US.
“The Stablecoin bill is equally important,” said Mike Cahill, CEO at the Douro Labs. “In the major financial institutions that explore the release, the Clear Federal Guardrails legitimate the Stablecoins as a new category of programming money -integrated with payments, regulating, and even treasury management.
“If the US gets right, it will not only lead to the crypto market – it will write the rulebook for the next global financial system.”
Related: The Genius Act can cement the dominance of the US dollar in the digital economy
The Genius Act may refuse de-dollarization
Because Trump imposed tariffs on trading partners, discussions around de-dollarization, a potential global move away from the US dollar as a global currency reserve, has gained traction. Supporters of the bill said it could strengthen the dollar’s position because most stablecoins were on the dollar, which would potentially enhance its influence on the digital economy.
According to Defillama, the two largest stablecoins in the crypto space are on the dollar – Tether’s USDT (USDT) and USDC of the Circle (USDC). Together, these tokens make up $ 217.5 billion or 86.4% of the total Stablecoin market cap of $ 251.7 billion.
“The talk of de-dollarization misses the bigger point: the dollar-backed stablecoins is the new 21st-century financial tool,” said Bill Sebell, executive director of the XDC Foundation. If the Genius Act is submitted, now “Anyone with a smartphone can hold a following digital dollar, increasing the reach and relevance for the USD in the exact moment of critics predicting its collapse.”
Magazine: Legal Panel: Crypto wants to overthrow banks, now it becomes them in the stablecoin fight
