Yesterday the Senate made a huge leap forward to regulating digital assets by passing the Guiding Emerging New Initiatives and Uniform Standards (GENIUS) Act. They did so overwhelmingly, supporting a bipartisan vote of 68-30. The bipartisan bill is backed by influential allies including Cynthia Lummis, R-Wyo. Next stop, the U.S.
The bill’s chief author, Sen. Bill Hagerty, R-Tenn., has written the GENIUS Act. This legislation would advance to craft a strong framework to regulate digital assets, including significant consumer protections and guardrails on tech firms that issue stablecoins. As evidence, the bill passed the House with overwhelming bipartisan support. Only four Democrats mustered the courage to join the majority of Republicans to vote against it.
Senator Lummis touted the passage of the GENIUS Act as a “real legislative victory.” Hagerty was on the same page here, claiming the bill would make the United States the “global leader in crypto.”
With this bill, the United States is one step closer to becoming the global leader in crypto. - Sen. Bill Hagerty
The bill has faced opposition. Senator Elizabeth Warren, D-Mass., has expressed concerns that GENIUS Act does not do enough to stop outflows from going to wicked activities.
This is a bill that was written by the industry that will supercharge the profitability of Donald Trump's crypto corruption, while it undercuts consumer protection and weakens our national defense. - Sen. Elizabeth Warren
Warren stated that the bill "is in a better place, but it's not in a good enough place." They were joined by other senators like Rand Paul (R-KY) and Josh Hawley (R-MO), who voted against the measure.
The passage of the GENIUS Act comes after a similar bill was blocked by Chuck Schumer, D-N.Y., and Democrats in May, highlighting the ongoing challenges in reaching a consensus on crypto regulation.
The GENIUS Act’s receptiveness has a good chance now, in the Republican-led House. This creates considerable doubt about the future of digital asset regulation in the United States. The House is meanwhile continuing to write its own companion bipartisan digital asset bill. Though highly imperfect, this effort lays the groundwork for further negotiations and potential overhaul.
The climate to this legislative onslaught is perhaps partially attended by the engagement of members of Donald Trump’s family in the crypto industry. Their company, World Liberty Financial, reportedly generated $57.3 million in revenue last year, adding another layer of complexity to the debate surrounding crypto regulation.
