U.S. Senators recently introduced a revised edition of the GENIUS Act, setting a significant milestone towards potentially turning this legislation into law. This initiative seeks to regulate stablecoin operations, an essential step forward in the United States’ approach to cryptocurrency management. The announcement came from Senate Majority Leader John Thune (R-SD), indicating that the new bill will be discussed in the Senate during its current session.
The legislation, formally known as the Guiding and Establishing National Innovation for U.S., aims to broadly define stablecoins, include provisions for anti-money-laundering compliance, and ensure that consumer protections are in place for investors.
In support of this legislative effort, Senators Cynthia Lummis (R-WY), Tim Scott (R-SC), and Bill Hagerty (R-TN) have co-sponsored the GENIUS Act. Their backing underscores the bipartisan interest in establishing a clear regulatory framework for stablecoins.
The launch of this updated legislation coincides with reports of a new stablecoin, USD1, affiliated with Donald Trump and intended for a $2 billion deal with crypto exchange Binance by the Abu Dhabi-based investment firm MGX. This development has drawn criticism from some U.S. lawmakers, including Senator Elizabeth Warren (D-MA), who condemned the situation as corrupt. Warren highlighted concerns over the potential ease the GENIUS Act could offer to the President and his family to profit from stablecoin transactions, labeling it as corruption.
This controversy sheds light on Trump’s growing involvement in cryptocurrency ventures, especially after the introduction of his memecoin, $TRUMP, which recently announced a gala dinner for its top 220 holders at the Trump National Golf Club in Washington, D.C. Critics argue that cryptocurrencies like $TRUMP and USD1 could enable foreign governments to gain undue influence with the sitting U.S. president.
With the reintroduction of the GENIUS Act, the Senate is poised for a critical debate over the regulation of stablecoins, highlighting the intersection of politics, finance, and digital currencies.
**Twitter Update:**
“GENIUS Act revisited in the Senate aims to regulate stablecoins, amid controversies over Trump’s crypto deals. Senators Lummis, Scott, and Hagerty co-sponsor the bill seeking to advance crypto legislation. #GENIUSAct #StablecoinRegulation #Cryptocurrency”
