Senate Stablecoin Bill Faces Setback: GENIUS Act Delayed

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Senate Stablecoin Bill Faces Setback: GENIUS Act Fail to Pass Key VoteA crucial bill by the U.S. the GENIUS Act, designed to frame rules for stablecoins like Tether and USD currency, experienced trouble this week. On 8th May, the Senate failed to pass the first step of the process required to start discussing the draft. This was the result even after months of efforts from both parties and support from the crypto community. What Happened in the Senate?The Senate required 60% of votes to advance the law but received only 49 in favour and 48 against. One of the important senators, John Thune, voted “no” intentionally so that the bill could be brought up again later. Two Republicans, Josh Hawley and Rand Paul, voted “no” as well, and most Democrats. The vote was not just about the bill. It was about ending long debates (called a filibuster) so lawmakers could start real talks. Some Democrats also stated that the law was being rushed and it will take more time to study and discuss it. Senator Ruben Gallego asked to delay the vote until Monday to allow more discussion. He thanked Republicans for trying to improve the bill and said he wanted to keep the bipartisan effort alive. But his request was blocked, likely by Senator Elizabeth Warren, who has raised concerns about crypto’s connection to former President Donald Trump in the Senate.What’s Inside the GENIUS Act?The new version of the bill includes major changes that would impact both U.S. and overseas crypto companies:Foreign Companies Like Tether Must Follow U.S. Laws: Even non-U.S. companies would be required to abide by U.S. regulations if they cater to American users.More Crypto Developers Covered: The legislation now protects more groups such as DeFi application developers, validator node operators, and self-custody wallet developers. They might have to comply with anti-money laundering regulations.Emergency Powers and Small Projects Support: The Secretary of the Treasury would be given authority to assist small crypto ventures but also move quickly during emergencies. Others fear this amounts to too much authority for one individual.Another big change: only Republicans now support the bill. Two Democrats, Kirsten Gillibrand and Angela Alsobrooks, have dropped out. This could make it harder for the draft to pass without Democrat support.Politics Are InvolvedMany Democrats have become more careful about crypto. One reason is a report about a $2 billion crypto deal involving a UAE company and a stablecoin (USD1) tied to Trump’s family. Some Democrats think the draft should do more to stop foreign risks and money laundering. Others just don’t want Trump to get credit for a bipartisan win.Senator Thune said Democrats could’ve added changes during the debate instead of stopping the bill completely.What’s Next?The GENIUS Act is not over yet. The Senate may vote on it again later this month. With billions of dollars and the future of stablecoin rules on the line, the next few weeks will be very important. Whether lawmakers can work together, or whether politics will get in the way remains to be seen.Source link