{"id":1537321,"date":"2025-05-21T16:15:00","date_gmt":"2025-05-21T20:15:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1537321"},"modified":"2025-05-21T16:15:00","modified_gmt":"2025-05-21T20:15:00","slug":"us-senate-votes-to-move-ahead-with-genius-act-legitimizing-stablecoins-for-global-institutional-adoption","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/us-senate-votes-to-move-ahead-with-genius-act-legitimizing-stablecoins-for-global-institutional-adoption\/1537321\/","title":{"rendered":"US Senate Votes To Move Ahead With GENIUS Act; ‘Legitimizing’ Stablecoins For Global Institutional Adoption"},"content":{"rendered":"

US Senate Votes To Move Ahead With GENIUS Act; ‘Legitimizing’ Stablecoins For Global Institutional Adoption<\/span><\/p>\n

\n

The GENIUS Act moved through a procedural vote on Monday (66-32)<\/strong>,<\/a> and has just passed its latest hurdle (69-31) allowing Senate Republican leaders to bring the legislation to the floor for debate and a final vote<\/strong>, as soon as this week<\/p>\n

<\/a><\/p>\n

A challenging amendment pricess awaits as the Senate bill, if passed, would need to be reconciled with a version approved by the House Financial Services Committee, <\/strong>and then both chambers of Congress must agree on a single bill before sending a final version to President Donald Trump for his signature.<\/p>\n

“There are still a lot of moving pieces,” <\/strong><\/em>said Jennifer Schulp, director of financial regulation studies at the Cato Institute, a libertarian think tank.<\/p>\n

Republican Senator Cynthia Lummis, one of the bill\u2019s key backers, said on May 15 that she\u00a0thinks it\u2019s a \u201cfair target\u201d to have the GENIUS Act\u00a0passed by May 26<\/a> – Memorial Day in the US.<\/strong><\/p>\n

*\u00a0 *\u00a0 *<\/p>\n

As CoinTelegraph’s Zoltan Vardai detailed ahead of the vote,<\/a> stablecoin adoption among institutions could surge as the United States Senate prepares to debate a key piece of legislation aimed at regulating the sector.<\/strong><\/p>\n

<\/a><\/strong><\/p>\n

After failing to gain support from key Democrats<\/a>\u00a0on May 8, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed the US Senate in a 66\u201332 procedural vote on May 20<\/strong> and is now heading to a debate on the Senate floor.<\/p>\n

The bill seeks to set clear rules for stablecoin collateralization and mandate compliance with Anti-Money Laundering laws.<\/p>\n

\u201cThis act doesn\u2019t just regulate stablecoins, it legitimizes them,\u201d<\/strong><\/em> said Andrei Grachev, managing partner at DWF Labs and Falcon Finance.<\/p>\n

\u201cIt sets clear rules, and with clarity comes confidence. That\u2019s what institutions have been waiting for,\u201d Grachev told Cointelegraph during the Chain Reaction daily X spaces\u00a0show<\/a>\u00a0on May 20, adding:<\/p>\n

\u201cStablecoins aren\u2019t a crypto experiment anymore. They\u2019re a better form of money. Faster, simpler, and more transparent than fiat. <\/strong>It\u2019s only a matter of time before they become the default.\u201d<\/p>\n

<\/a><\/p>\n

Source:\u00a0<\/em>Cointelegraph<\/em><\/a><\/p>\n

Senate bill seen as path to unified digital system<\/h2>\n

The GENIUS Act may be the \u201cfirst step\u201d toward establishing a \u201cunified digital financial system which is borderless, programmable and efficient,\u201d Grachev said, adding:<\/p>\n

\u201cWhen the US moves on stablecoin policy, the world watches.\u201d<\/strong><\/em><\/p>\n

Republican Senator Cynthia Lummis, a co-sponsor of the bill,\u00a0also pointed to Memorial Day as a \u201cfair target<\/a>\u201d for its potential passage.<\/p>\n

Grachev said regulatory clarity alone will not drive institutional adoption. Products offering stable and predictable yield will also be necessary. Falcon Finance is currently developing a synthetic yield-bearing dollar product designed for this market, he noted.<\/p>\n

<\/a><\/p>\n

Yield-bearing stablecoins issuance. Source: Pendle<\/em><\/p>\n

Yield-bearing stablecoins<\/a>\u00a0now represent 4.5% of the total stablecoin market after rising to $11 billion in total circulation, Cointelegraph reported on May 21.<\/p>\n

GENIUS Act regulatory gaps don\u2019t address offshore stablecoin issuers<\/h2>\n

Despite broad support for the GENIUS Act, some critics say the legislation does not go far enough.<\/p>\n

Vugar Usi Zade, the chief operating officer at Bitget exchange, told Cointelegraph that \u201cthe bill doesn\u2019t fully address offshore stablecoin issuers like Tether, which continue to play an outsized role in global liquidity.\u201d<\/strong><\/em><\/p>\n

He added that US-based issuers will now face \u201csteeper costs,\u201d likely accelerating consolidation across the market and favoring well-resourced players that can meet the new thresholds.<\/p>\n<\/p>\n

Still, Zade acknowledged that the legislation could bring greater \u201cstability\u201d to regulated offerings,<\/strong> depending on how it is ultimately worded and enforced.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 05\/21\/2025 – 12:15<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/crypto\/us-senate-votes-move-ahead-genius-act-legitimizing-stablecoins-global-institutional-adoption<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

US Senate Votes To Move Ahead With GENIUS Act; ‘Legitimizing’ Stablecoins For Global Institutional Adoption The GENIUS Act moved through a procedural vote on Monday…<\/p>\n","protected":false},"author":0,"featured_media":1537322,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1537321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1537321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1537321"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1537321\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1537322"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1537321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1537321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1537321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}