US lawmakers to hold cloture vote on the GENIUS Act this Monday, marking a key step for the stablecoin bill’s progress.
This upcoming Monday, the United States Senate is gearing up for a critical vote on the Stablecoin Bill, also known as the GENIUS Act. Following numerous delays, the measure progresses with a ‘cloture vote’ scheduled by Senate Majority Leader John Thune.
The decision is a significant milestone in the country’s regulation of stablecoins, and it has also garnered national attention and a renewed sense of urgency among legislators.
Stablecoin Bill Advances to Cloture Vote Stage
Senator Thune had formally filed for cloture on the GENIUS Act, setting the vote for May 19, according to American Journalist Eleanor Terrett in her most recent post on X. After a succession of back-and-forth debates, this action indicates a final push by lawmakers to bring the legislation to the floor.
Additionally, Senate sources indicate that a bipartisan amendment is currently being evaluated. The proposed modifications encompass more stringent regulations for financial asset-related technology companies, enhanced consumer protection, and increased supervision of government officials, including individuals like Elon Musk.
Additionally, they incorporate more explicit regulations to safeguard against FDIC insurance abuse and fortify bankruptcy protections.
These modifications may facilitate the bill’s adoption by a broader range of individuals from both political parties. The Senate’s readiness for digital asset legislation that strikes a balance between financial innovation and accountability will be determined by the vote.
Description of the GENIUS Act:
Senator Bill Hagerty introduced the bill to regulate stablecoin in the United States, establishing a regulatory framework for token issuers. Stablecoins are digital tokens that are linked to the U.S. dollar. The measure guarantees that issuers adhere to rigorous transparency, asset backing, and licensing regulations.
The Federal Reserve would supervise large issuers with assets exceeding $10 billion, while state authorities would regulate lesser issuers under the proposed legislation.
Stablecoins must be backed by assets such as U.S. dollars or Treasury bills by all issuers. The bill also seeks to maintain the strength of the U.S. dollar in global markets and promote financial inclusion.
Amidst the Call for Crypto Oversight, the Act Remains Stable
The House has already passed the STABLE Act, a stablecoin bill analogous to the GENIUS Act, while the Senate is preparing for the GENIUS Act vote. This legislation establishes regulations for all U.S. dollar-backed stablecoins, such as prominent tokens such as USD Coin (USDC) and Tether (USDT).
The STABLE Act is supported by lawmakers who believe it will provide consumers with additional protection and contribute to preserving the United States’ leadership in financial technology.
According to Congressman Dan Meuser and other advocates, it establishes essential safeguards as digital currency usage expands. The measure also aims to prevent risky practices by mandating complete transparency from stablecoin companies.
It has also been observed that the United States Congress seeks to expedite crypto oversight by implementing the new stablecoin law. According to lawmakers, the GENIUS and STABLE Acts are intended to establish order in a swiftly changing segment of the financial system.
