Key Insights:
- GENIUS Act mandates federal oversight for stablecoins exceeding $10 billion market cap.
- Non-financial firms like Amazon may be barred from issuing their own stablecoins.
- Vote outcome could define stablecoins as digital cash under U.S. law.
The U.S. Senate is set to vote on the GENIUS Act today, a bill that could redefine stablecoin regulation, restrict tech giants, and accelerate crypto adoption.
Senate Prepares for Crucial GENIUS Act Decision
The U.S. Senate is set to hold a final vote on the GENIUS Act today at 4:30 PM. The bill, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, represents a foundational shift in how stablecoins are treated under federal law.
Senate Cloakroom confirmed the vote timing in a post on X earlier today. The bill will proceed to the House if passed, marking a pivotal step toward broader regulation of the fast-growing stablecoin market.
Eleanor Terrett of Fox Business noted that this will be the last vote the GENIUS Act faces in the Senate. The result could determine how cryptocurrencies tied to the U.S. dollar are governed across the financial system.
CryptoGoos called today’s vote a “big moment for crypto,” emphasizing the market’s anticipation of the outcome.
Stablecoins Face Regulatory Crossroads Under New Framework
If passed, the GENIUS Act would impose direct federal oversight on any stablecoin issuer holding a market cap above $10 billion. These rules aim to integrate stablecoins into the U.S. financial system as digital equivalents of cash.
The bill introduces a dual-pathway approach: large issuers will fall under federal jurisdiction, while smaller ones may operate under state regulators—provided they align with national standards.
According to a Bernstein research report released Monday, this shift would transform stablecoins from mere crypto settlement tools into a core component of internet finance infrastructure. “Stablecoins will evolve from the money rail of crypto to the money rail of the internet,” analysts said.
Stablecoins such as Tether (USDT) and USD Coin (USDC) have become essential to digital asset trading and international payments, with daily volumes regularly surpassing $100 billion, according to CoinMarketCap.
The GENIUS Act also defines these assets as “digital cash,” a designation that could enhance their acceptance in traditional payment systems. That move may accelerate adoption among merchants and fintech platforms, potentially expanding use cases far beyond current crypto-native environments.
Tech Giants May Face New Barriers in Stablecoin Plans
The bill includes provisions that may restrict non-financial corporations from issuing their own stablecoins.
Bernstein highlighted that major e-commerce players, including Amazon and Walmart, have reportedly explored stablecoin issuance strategies. However, the GENIUS Act could block such initiatives by requiring stablecoin issuers to operate under regulated financial entities.
“The GENIUS Act makes it prohibitive for non-financial public companies to become stablecoin issuers,” Bernstein said in its note.
If the bill becomes law, companies like Amazon would likely need to partner with licensed U.S. stablecoin providers rather than launching proprietary tokens. That shift could hand a competitive edge to regulated crypto firms already complying with federal standards.
Market Braces for Long-Term Impact
The final Senate vote is being closely tracked by lawmakers, investors, and crypto executives alike.
While today’s vote does not guarantee passage into law, it marks a key milestone. The House of Representatives will take up the bill next if it clears the Senate floor. Analysts expect the measure to pass into law in the coming months, barring political setbacks.
The GENIUS Act arrives amid rising interest in crypto regulation following several high-profile industry failures in 2022 and 2023. Policymakers have intensified calls for consumer protection and financial transparency within the digital asset ecosystem.
By laying a regulatory foundation for stablecoins, the GENIUS Act could set a precedent for future digital asset legislation in the United States.
With the 4:30 PM vote approaching, the crypto sector awaits a decision that could reshape its monetary backbone.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
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