- US Senate didn’t pass GENIUS Act, impacting stablecoins like Tether.
- Future Senate debate motion could occur by month’s end.
- Regulatory changes include jurisdiction restructuring and service provider definition.
The US Senate’s failure to advance the GENIUS Act impacts stablecoin regulation, with major implications for companies like Tether.
The US Senate on May 9 failed to advance the GENIUS Act for stablecoin regulation in a 48-49 vote.
US Senate Fails to Advance GENIUS Act Vote
Market impact is significant, particularly for Tether, due to regulatory ambiguity.
The US Senate’s failure to advance the GENIUS Act marks a setback for US stablecoin regulation. Central to the legislative process were Senate Majority Leader John Thune (R-S.D.) and Senate Minority Leader Chuck Schumer (D-N.Y.), who led the opposing factions, reflecting political divisions. Senate vote sees support for Genius Act from key stakeholders.
“We needed more time to review the legislation; some of us had not seen the bill text before the vote.” – Chuck Schumer, Senate Minority Leader, Democratic Party
Digital Asset Market Reels from Legislative Setback
Did you know? The GENIUS Act’s failure underscores a history of legislative challenges in regulating digital assets, highlighting ongoing regulatory uncertainty.
CoinMarketCap data shows Tether’s recent activity: a $149.73 billion market cap and $116.21 billion 24-hour trading volume. Trading volumes increased by 2.54%, while the seven-day change recorded a minor decrease of 0.05%, emphasizing Tether’s stability amid regulatory uncertainty.
According to Coincu research, the GENIUS Act would significantly impact regulatory protocols, likely ushering in more stringent compliance measures. This could push the DeFi sector towards stringently AML and BSA-compliant structures.
Source: https://coincu.com/336763-senate-stablecoin-genius-act-vote/