The Genius Act, a set of new regulations for stablecoins, passed the Senate with a 68-30 vote in favour of the crypto legislation. The Genius Act received enough bipartisan support to pass the Senate and reach the next round of scrutiny. Eighteen Democrats joined the Republicans to vote for the bill. Stablecoins are digital assets pegged to real-world assets such as the US dollar. The crypto industry has witnessed a strange turn of events, from experiencing a draconian ‘war on crypto’ under the previous administration to a sudden supportive President Trump creating very generous incentives for the crypto industry.

However, the change of context comes after the crypto industry pumped over $131 million into the Trump campaign. Some Republicans voted against the bill, such as Rand Paul, who is sceptical about the Genius Act and its generous concessions to the technology sector, particularly big tech companies like Microsoft and Amazon.

However, big tech firms such as Amazon and Meta will be barred from enjoying the use of stablecoins if they do not provide consumer protections regarding data security and financial safety rails. The Genius Act provides other protections for consumers, such as an extra set of provisions that give stablecoin holders priority in an economic crisis, so that banks or companies are barred from using the reserve dollar to steal customers’ funds. Therefore, if a stablecoin issuer faces a crisis, stablecoin holders will receive priority when withdrawing their funds. The largest banks of America, including Bank of America, lobbied hard to bar non-established banks from issuing stablecoins. Such a move would have monopolized an innovation invented to protect Americans from corrupt banks.

Circle, a stablecoin issuer and Nasdaq-listed company, may benefit from the Genesis Act because it has invested heavily in its own USDC token. Shareholders have boosted Circle’s price, possibly to take advantage of the new regulatory environment. A company spokesperson commended the senators for passing the act and stated that the new legislation could preserve the US dollar in a new technological age. The company further commended both Republicans and Democrats for supporting legislation that promotes innovation while protecting consumers at the same time. The new bill now has to pass the House of Representatives, and if it passes, it will be placed on President Trump’s desk to be signed into law.

Elizabeth Warren, a senator who opposed the bill, accused it of placing more power into the hands of a few tech billionaires, who will use the Genius Act to abuse their customers by accessing their financial data. Warren calls the legislation a “weak bill” and is concerned that wealthy companies will use the new laws to control money more insidiously. Warren has advocated against banks having too much power to prevent a financial crisis from occurring in the future. Warren argues that the Genesis Act allows banks and corporations to have greater freedoms with the use of stablecoins, which traditional financial institutions are usually restricted from enjoying. The greater freedoms seem to bypass the regulations that resulted from the 2008 financial crisis. Ironically, Bitcoin was invented to circumvent the corrupt banks that were given a bailout during the financial crash. Warren predicts that America will experience a massive financial crisis in the next two years due to the deregulation of traditional markets.

The House of Representatives is still waiting on the outcome of the Clarity Act, which aims to provide more certainty about the rules of digital assets. Democrats who oppose the Genius Act also oppose the Clarity Act for similar reasons, namely that the two bills conspire against working-class Americans and will ultimately benefit a select few billionaires and their companies. 

The Genius Act, a set of new regulations for stablecoins, passed the Senate with a 68-30 vote in favour of the crypto legislation. The Genius Act received enough bipartisan support to pass the Senate and reach the next round of scrutiny. Eighteen Democrats joined the Republicans to vote for the bill. Stablecoins are digital assets pegged to real-world assets such as the US dollar. The crypto industry has witnessed a strange turn of events, from experiencing a draconian ‘war on crypto’ under the previous administration to a sudden supportive President Trump creating very generous incentives for the crypto industry.

However, the change of context comes after the crypto industry pumped over $131 million into the Trump campaign. Some Republicans voted against the bill, such as Rand Paul, who is sceptical about the Genius Act and its generous concessions to the technology sector, particularly big tech companies like Microsoft and Amazon.

However, big tech firms such as Amazon and Meta will be barred from enjoying the use of stablecoins if they do not provide consumer protections regarding data security and financial safety rails. The Genius Act provides other protections for consumers, such as an extra set of provisions that give stablecoin holders priority in an economic crisis, so that banks or companies are barred from using the reserve dollar to steal customers’ funds. Therefore, if a stablecoin issuer faces a crisis, stablecoin holders will receive priority when withdrawing their funds. The largest banks of America, including Bank of America, lobbied hard to bar non-established banks from issuing stablecoins. Such a move would have monopolized an innovation invented to protect Americans from corrupt banks.

Circle, a stablecoin issuer and Nasdaq-listed company, may benefit from the Genesis Act because it has invested heavily in its own USDC token. Shareholders have boosted Circle’s price, possibly to take advantage of the new regulatory environment. A company spokesperson commended the senators for passing the act and stated that the new legislation could preserve the US dollar in a new technological age. The company further commended both Republicans and Democrats for supporting legislation that promotes innovation while protecting consumers at the same time. The new bill now has to pass the House of Representatives, and if it passes, it will be placed on President Trump’s desk to be signed into law.

Elizabeth Warren, a senator who opposed the bill, accused it of placing more power into the hands of a few tech billionaires, who will use the Genius Act to abuse their customers by accessing their financial data. Warren calls the legislation a “weak bill” and is concerned that wealthy companies will use the new laws to control money more insidiously. Warren has advocated against banks having too much power to prevent a financial crisis from occurring in the future. Warren argues that the Genesis Act allows banks and corporations to have greater freedoms with the use of stablecoins, which traditional financial institutions are usually restricted from enjoying. The greater freedoms seem to bypass the regulations that resulted from the 2008 financial crisis. Ironically, Bitcoin was invented to circumvent the corrupt banks that were given a bailout during the financial crash. Warren predicts that America will experience a massive financial crisis in the next two years due to the deregulation of traditional markets.

The House of Representatives is still waiting on the outcome of the Clarity Act, which aims to provide more certainty about the rules of digital assets. Democrats who oppose the Genius Act also oppose the Clarity Act for similar reasons, namely that the two bills conspire against working-class Americans and will ultimately benefit a select few billionaires and their companies.