U.S. Congress Passes Landmark Crypto Legislation
On Thursday, the United States Congress approved its first significant standalone cryptocurrency bill, marking a significant shift in the U.S.’s stance toward digital currencies. The House passed the GENIUS Bill with a vote of 308-122, receiving considerable support from Democrats.
This legislation introduces regulations for stablecoins, a type of cryptocurrency that proponents argue will revolutionize commerce. This achievement is seen as a major victory for the cryptocurrency sector and President Trump, who has expressed ambitions to position the U.S. as the leading hub for crypto.
Trump played a critical role in securing the bill’s passage after overcoming objections from some Republican lawmakers regarding the process used to advance other crypto legislation. His intervention was necessary to sway lawmakers and navigate a lengthy voting process to eliminate procedural challenges.
The GENIUS Bill—short for “Guiding and Establishing National Innovation for U.S. Stablecoin”—is now set to be signed by the president, having already passed through the Senate. This bill marks a departure from the Biden administration’s previous approach, which sought more stringent regulations for crypto companies.
Understanding Stablecoins
The new regulations will impose formal guidelines on stablecoins, which are considered a more stable form of cryptocurrency. Issuers are required to maintain a dollar’s equivalent in reserve for each stablecoin sold, ensuring that holders can redeem their funds promptly.
According to industry leaders, stablecoins could enable seamless international transactions without high fees traditionally charged by banks. Retail giants like Amazon and Walmart are also exploring the idea of launching their own stablecoins to bypass credit card transaction fees.
The passage of the GENIUS Act followed intense lobbying efforts from the cryptocurrency sector, which collectively spent over $100 million on Congressional races last year and is preparing for even larger expenditures ahead of the next midterm elections. Critics argue this level of spending demonstrates the influence of political power in shaping legislation.
The bill introduces measures for stablecoin regulation, including reserve requirements and anti-money laundering provisions, aiming to address concerns that stablecoins could be exploited by criminals. However, some critics argue that the regulations are insufficient and contend that they allow non-financial institutions to issue stablecoins with fewer constraints than those placed on banks.
