Senate Leader John Thune Files Motion for GENIUS Act Vote – Coincu

Senate Majority Leader John Thune has formally filed a cloture motion for the GENIUS Act, with a vote scheduled for May 19. If passed, it will initiate the first targeted federal regulation of stablecoins. This legislative move is expected to define future digital asset regulations in the United States.

Senate Majority Leader John Thune filed a formal cloture motion for the GENIUS Act on May 16, planning a vote for May 19. The GENIUS Act, having faced previous challenges, aims to establish federal regulations on stablecoins. Amendments proposed include prohibitions on FDIC misuse and enhanced bankruptcy protections.

GENIUS Act Vote: A Pivotal Moment for Stablecoin Regulation

If passed, the GENIUS Act would significantly alter the U.S. regulatory landscape for digital assets, specifically in the stablecoin sector. The Act includes a framework to address issuer regulation and potential restrictions on foreign issuers. These actions are anticipated to shape clearer regulatory direction for stablecoins across the nation.

Market reactions have been mixed, with uncertainty surrounding the GENIUS Act reflected in reactions from stakeholders. Senator Mark Warner has highlighted concerns over readiness, voicing that:

“While we’ve made meaningful progress on the GENIUS Act, the work is not yet complete, and I simply cannot in good conscience ask my colleagues to vote for this legislation when the text isn’t finished.”

Context: COMPETING LEGISLATION AND MARKET DATA

Did you know? The GENIUS Act is facing competition from the STABLE Act, which presents a distinct regulatory approach allowing foreign issuers of stablecoins amid concerns of insufficient protective measures for the U.S. financial system.

World Liberty Financial USD, known as USD1, maintains stability with a market cap of $2.13 billion. Its 24-hour trading volume is $50.95 million, showing a minor decline of 0.02% in value over the past day. Despite market uncertainties, it remains a small player with a market dominance of 0.06%. Data sourced from CoinMarketCap.

According to Coincu research, the GENIUS Act could lead to significant shifts in financial and regulatory environments, promoting stablecoin integrity, but also raising challenges for non-U.S. issuers. Stabilizing regulations could spur more institutional adoption, impacting market dynamics.