- U.S. Senate advances GENIUS Act, stablecoin legislation progress.
- Vote shifts 16 Democrats, rare bipartisan support made.
- Potential for enhanced market confidence noted by experts.
The U.S. Senate took a significant step forward by advancing the GENIUS Act on Monday, signaling potential legislative changes for stablecoins.
The bipartisan support observed marks a potential turning point in the U.S. regulatory landscape for crypto assets, setting the stage for further market developments.
GENIUS Act Gains Senate Approval with 66-32 Vote
The GENIUS Act signifies a major legislative action by the U.S. Senate to create a regulatory framework for payment stablecoins, passing with a 66-32 vote. This reflects a notable shift in sentiment, particularly with 16 Democratic senators reversing their previous opposition to endorse the bill this week.
New restrictions unveiled in the GENIUS Act will limit interest payments and constrain stablecoin issuance by non-financial entities, reshaping how banks, fintech companies, and crypto firms operate. These measures aim to enhance market stability and regulatory oversight.
Industry and political reactions have been enthusiastic, describing the procedural vote as a “historic victory.” Matt Hougan, Bitwise’s CIO, remarked to clients that the legislation could herald a multi-year bull market while noting that comprehensive U.S. crypto law might emerge this summer. Matt Hougan wrote to clients, “Washington’s politicians did the right thing. I don’t want to get ahead of myself, but it looks like we will see the first comprehensive crypto legislation enacted in the U.S. this summer.”
Stablecoin Market Dynamics Post-Legislation
Did you know? In the U.S., the last major bipartisan cryptocurrency effort was the Infrastructure Bill, which previously caused market confusion due to unclear terms. The GENIUS Act is seen as a positive shift toward regulatory clarity.
CoinMarketCap reports USDC’s current price is $1.00, with a market cap of $60.51 billion and a 24-hour trading volume of $12.35 billion. Despite minor fluctuations, USDC maintains stability, reflecting its pivotal role amid evolving crypto regulations.
Coincu analysts highlight the potential of finalizing GENIUS Act amendments to boost institutional investor confidence, potentially enhancing liquidity in main crypto markets. This legislative clarity is anticipated to drive increased capital inflows.
Source: https://coincu.com/338880-us-senate-stablecoin-legislation/