In a significant milestone for the cryptocurrency industry, the US House of Representatives has passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which is now pending presidential approval. This achievement marks a substantial shift in the US regulatory landscape, which had previously been characterized by resistance to the crypto sector. The GENIUS Act follows the recent passage of the Digital Asset Market Clarity Act, a bill aimed at establishing comprehensive rules for the broader crypto market. With a 308-122 vote, the GENIUS Act will now be forwarded to the President for signature, allowing regulators to begin developing guidelines for stablecoin issuers.
The legislative process highlighted bipartisan support for tailored regulations, with many Democrats joining the Republican majority in favor of the bill. However, some Democrats argued that the proposed rules posed risks to investors and could be exploited by financial institutions.
The passage of the GENIUS Act is seen as a crucial step towards establishing a clear regulatory framework for the US crypto industry, with the Clarity Act remaining a key legislative goal. Industry lobbyists will now focus on the more complex Clarity Act, which aims to establish a comprehensive set of rules for the crypto market. The Senate is expected to draft its own version of the market structure bill, with Senator Tim Scott aiming to complete the legislation by September 30.
The level of Democratic support for the bill is seen as a crucial factor in determining the Senate's approach to the issue.