In Washington, the genius law seeking to regulate stubcoins faces an unforgiving Senate and an unforgivable watch, with the risk of leaving the United States.
As reported by Cryptootics, after rejecting the law with a narrow margin of 48-49 on May 8, due to a dispute over President Donald Trump’s investment in cryptocurrency, he is currently senators of both parties (Republicans and Democrats) They are working to reinvigorate the laws regarding stubcoins.
The bill is expected to be approved before the fall break. This corresponds to the last Monday in May. This will be the next 26th. And then the moment comes, but Democrat Angela and lawmakers like Brooks agree that they are working to boost legislation.
Tennessee Republican Sen. Bill Hagerty, a major factor in the law, declared in an interview with Congress that staff on both parties are working on the bill. According to Bloomberg He expressed his hope that Democrats agree to approve the initiative before the holidays.and then the Senate will focus on a package of Republican taxes and symbolic expenses. “Now is the time,” Hagerty said. “We’ll see if Sensible will win.”
Therefore, over time, expectations increase. And in the middle, cryptocurrency lawyer and advocate John Deaton said the failure of this law was It could delay important reforms through 2029. It will keep the industry locked in the scope of decommissioned regulations.
Deaton, known in particular for his defense of the cryptocurrency industry against the SEC, said the genius law is “clear” to support whether politicians prioritize national interests over partisan policies.
The dollar domain is at risk
John Deaton matches other users whose genius law should be called the “dolluk dollar law” because its influence transcends cryptocurrency. He is a global context in which countries like China and Russia promote light da; Stubcoins backed by dollars could strengthen demand for treasure bonds Consolidate the status of the dollar as a global reserve currency.
“We are in an age where other countries are trying to eliminate the world. We must ensure that the dollar is dominant,” Deaton said.
Furthermore, Deaton criticized the extreme changes in cryptocurrency policy with the US presidential administrations, which ranged from a oppressive approach (“industry dominant government”) to a hyper-urban cryptocurrency stance. This launched “President’s Memo Coin” with Trump.
Similarly, in that publication, Deaton regretted that the Act of 1933 (Securities Act) and the Law of 1946 (Case V. Howie) were applied to modern technologies such as cryptocurrencies and artificial intelligence (AI), producing outdated “regulatory standards.”
The main stubcoin issuer has received the genius bill for Circle, the company behind USDC, one of the most used stubcoins in the United States, especially Circle, most of Circle. Industry participants argue Regulation clarity could encourage more widespread adoption of ridiculous integration in traditional financial marketsmaking it more accessible to businesses, banks and consumers.
The cryptocurrency industry is clear
Additionally, some industry leaders believe that approval of the Genius Act is key to reducing regulatory uncertainty. This is essential for integrating stubcoins into traditional finances. Establishing clear legal guidelines could encourage financial institutions and payment networks to adopt Satan and position the United States as the world leader in digital dollars.
Despite industry support, the Genius Act has generated criticism of lawmakers and regulatory bodies who are concerned about their potential implications. Some critics fear that the bill will not add enough risks related to financial stability. They are concerned that the widespread issuance of stubcoins could lead to intermediation in the banking sector.
Others argue that participation by technological giants like Elon Musk (formerly Twitter) X can introduce systemic risk, especially when companies start. Issue your own stub coins to compete with government-backed coins.
Sen. Elizabeth Warren has expressed concern about the possibility that large companies may be using Stablecoins to avoid traditional financial regulations. “Without the right protective measures, we could see large-scale technologies creating their own currency and damaging the US dollar and the financial system,” he warned.
Democrats are also proposing national security amendments to prevent stubcoin emitters from circumventing the U.S. sanctions law. These amendments have been specifically addressed with Stablecoins issued overseas, such as Tether (USDT), and are being investigated for their potential use in illegal financial activities.
Will the genius law win?
Therefore, to analyze all this, the Genius Law is currently under legislative review; Senate Banking Committee to vote for the bill. Bipartisan support gives you a solid foundation. However, the final version could experience considerable modifications before reaching the entire Senate.
If approved, the bill could lay the foundation for a financial ecosystem driven by US stubcoins and bridge the gap between traditional finances and digital assets. However, if opposition from regulatory agencies and skeptical legislators gains strength, stablecoins regulations continue to face obstacles and cause the industry to uncertainty.