Senate Stablecoin Bill Makes Progress With New Draft—Here's What's In It
The Senate’s GENIUS Act is under renewed consideration, with pro-crypto Democrats claiming concessions from Republicans. A new draft includes provisions on national security, ethics, Big Tech, and foreign issuers, but enforceability remains uncertain. The bill exempts the president and vice president from a rule barring senior officials from issuing stablecoins, while prohibiting executive special government employees from doing so. The GENIUS Act aims to establish a legal framework for stablecoins, which are pegged to the U.S. dollar. Concerns persist regarding Big Tech's involvement and potential risks of stablecoins de-pegging from their dollar value. The bill mandates a study on insolvency but imposes no obligations on Congress to act on its findings. Foreign issuers like Tether face scrutiny, with new requirements for compliance with U.S. anti-money laundering standards. The bill's future hinges on Democratic support, with key members reviewing the text before a potential vote.
