Latest news with #GuidingandEstablishingNationalInnovationforU.S.StablecoinsAct
Miami Herald
3 days ago
- Business
- Miami Herald
Stablecoin bill creates protections for crypto users, critics say it's not enough
June 25 (UPI) -- After passing the Senate via cloture, the Guiding and Establishing National Innovation for U.S. Stablecoins Act faces a vote in the U.S. House in the coming weeks. Proponents of the bill establishing regulations for payments with stablecoins say it is the first step in establishing protections for businesses and consumers while opponents say it lacks important guardrails. Stablecoin, a form of cryptocurrency that is backed by a more stable asset, such as a currency like the U.S. dollar or a commodity like gold, is designed to maintain a stable value. The GENIUS Act creates legal guidelines for licensing stablecoin issuers and oversight mechanisms to regulate banks and other financial institutions dealing in stablecoins. Sen. Bill Hagerty, R-Tenn., sponsored the bill in the Senate. He said on the Senate floor that passing the act will improve the speed and efficiency of payment with stablecoins around the globe while creating safeguards to deter illicit activity. "Stablecoins also advance a vital national interest by driving demand for U.S. Treasuries. A recent report forecasts that with a well-crafted U.S. regulatory framework, stablecoin issuers could become one of the top holders of U.S. Treasuries by the end of this decade -- if not sooner," Hagerty said. "This would strengthen our fiscal position and cement the dollar's status as the world's reserve currency. If we fail to act now, not only will these benefits slip away. Without a regulatory framework, stablecoin innovation will proliferate overseas -- not in America." Christian Catalini, founder of the Massachusetts Institute of Technology's Cryptoeconomics Lab, told UPI that the GENIUS Act will lower the cost of making payments with stablecoin internationally. "It is much needed legislation that will unlock a safer and more scalable stablecoin ecosystem," Catalini said. "It will lead to entry by many more issues, increasing competition among stablecoins." Beginning three years after the GENIUS Act is enacted, it will be illegal to offer or sell a payment stablecoin to anyone in the United States without a permit. It will also be illegal for foreign service providers to issue or make a stablecoin available in the United States without complying with U.S. guidelines. This includes demonstrating compliant technological capabilities. Those who violate the GENIUS Act would be subject to fines of up to $1 million and five years in prison for each violation. The bill dictates the requirements for becoming a stablecoin issuer. Among these requirements, the issuer must have the capital to support the stablecoins they are issuing. Issuers will be required to submit reports upon request detailing their financial condition, their system for monitoring and controlling financial and operating risks and compliance with the Bank Secrecy Act and other laws and sanctions implemented by the Secretary of the Treasury. Nonbank entities, such as fintech companies, will be able to apply for licensing to issue stablecoins. Fifty Republicans and 18 Democrats voted to end debate over the bill in the Senate, allowing it to advance. Catalini said it garnered some bipartisan support due to the significance of stablecoin. "The technology is likely to be ultimately as impactful as the Internet," he said. "Countries that will create the best environment for it will lead for decades to come." Sen. Elizabeth Warren, D-Mass., voted against ending debate, arguing that the bill does not do enough to stop government officials, such as President Donald Trump, from engaging in corruption with the use of cryptocurrency. Trump and first lady Melania Trump each launched new meme coins hours before Inauguration Day. Sen. Mark Warner, D-Va., was among the Democrats to support the bill. In a statement, he said concerns remain about how Trump and his family have used crypto technologies to "evade scrutiny." However, he does not believe this should deter from passing the regulations in the GENIUS Act. "We must remain vigilant in exposing and stopping these abuses," Warner said. "But our outrage over that corruption cannot prevent us from building a foundation for responsible innovation in this space. If we don't lead, others will, and not in ways that reflect our interests or democratic values." Independent Community Bankers of America expressed concerns with the GENIUS Act in a letter to the Senate last month. Chief among those concerns was language that it believed would allow non-bank issuers to obtain Federal Reserve Master Accounts. The current version of the bill has addressed that language, according to the ICBA. "On behalf of the nation's community bankers, ICBA appreciates the work by the Senate to address concerns raised by ICBA with the GENIUS Act throughout the legislative process in order to provide regulatory clarity while protecting against the negative economic consequences that would result from community bank disintermediation," Rebeca Romero Rainey, ICBA president and CEO, said in a statement. Catalini said that he expects more regulations to follow due to Trump's support of cryptocurrency. "We need new rules for market infrastructure, tax treatment and more," he said. "No bill is perfect but the GENIUS Act is an important first step in ensuring consumers and businesses are appropriately protected when paying for holding a balance in stablecoin." Sen. Josh Hawley, R-Mo., and Sen. Rand Paul, R-Ky., voted against ending debate on the bill. They did not respond to requests for comment. Copyright 2025 UPI News Corporation. All Rights Reserved.
UPI
3 days ago
- Business
- UPI
Stablecoin bill creates protections for crypto users, critics say it's not enough
1 of 3 | Sen. Bill Hagerty, R-Tenn., sponsored the Guiding and Establishing National Innovation for U.S. Stablecoins Act in the U.S. Senate. Photo by Annabelle Gordon/UPI | License Photo June 25 (UPI) -- After passing the Senate via cloture, the Guiding and Establishing National Innovation for U.S. Stablecoins Act faces a vote in the U.S. House in the coming weeks. Proponents of the bill establishing regulations for payments with stablecoins say it is the first step in establishing protections for businesses and consumers while opponents say it lacks important guardrails. Stablecoin, a form of cryptocurrency that is backed by a more stable asset, such as a currency like the U.S. dollar or a commodity like gold, is designed to maintain a stable value. The GENIUS Act creates legal guidelines for licensing stablecoin issuers and oversight mechanisms to regulate banks and other financial institutions dealing in stablecoins. Sen. Bill Hagerty, R-Tenn., sponsored the bill in the Senate. He said on the Senate floor that passing the act will improve the speed and efficiency of payment with stablecoins around the globe while creating safeguards to deter illicit activity. "Stablecoins also advance a vital national interest by driving demand for U.S. Treasuries. A recent report forecasts that with a well-crafted U.S. regulatory framework, stablecoin issuers could become one of the top holders of U.S. Treasuries by the end of this decade -- if not sooner," Hagerty said. "This would strengthen our fiscal position and cement the dollar's status as the world's reserve currency. If we fail to act now, not only will these benefits slip away. Without a regulatory framework, stablecoin innovation will proliferate overseas -- not in America." Christian Catalini, founder of the Massachusetts Institute of Technology's Cryptoeconomics Lab, told UPI that the GENIUS Act will lower the cost of making payments with stablecoin internationally. "It is much needed legislation that will unlock a safer and more scalable stablecoin ecosystem," Catalini said. "It will lead to entry by many more issues, increasing competition among stablecoins." Beginning three years after the GENIUS Act is enacted, it will be illegal to offer or sell a payment stablecoin to anyone in the United States without a permit. It will also be illegal for foreign service providers to issue or make a stablecoin available in the United States without complying with U.S. guidelines. This includes demonstrating compliant technological capabilities. Those who violate the GENIUS Act would be subject to fines of up to $1 million and five years in prison for each violation. The bill dictates the requirements for becoming a stablecoin issuer. Among these requirements, the issuer must have the capital to support the stablecoins they are issuing. Issuers will be required to submit reports upon request detailing their financial condition, their system for monitoring and controlling financial and operating risks and compliance with the Bank Secrecy Act and other laws and sanctions implemented by the Secretary of the Treasury. Nonbank entities, such as fintech companies, will be able to apply for licensing to issue stablecoins. Fifty Republicans and 18 Democrats voted to end debate over the bill in the Senate, allowing it to advance. Catalini said it garnered some bipartisan support due to the significance of stablecoin. "The technology is likely to be ultimately as impactful as the Internet," he said. "Countries that will create the best environment for it will lead for decades to come." Sen. Elizabeth Warren, D-Mass., voted against ending debate, arguing that the bill does not do enough to stop government officials, such as President Donald Trump, from engaging in corruption with the use of cryptocurrency. Trump and first lady Melania Trump each launched new meme coins hours before Inauguration Day. Sen. Mark Warner, D-Va., was among the Democrats to support the bill. In a statement, he said concerns remain about how Trump and his family have used crypto technologies to "evade scrutiny." However, he does not believe this should deter from passing the regulations in the GENIUS Act. "We must remain vigilant in exposing and stopping these abuses," Warner said. "But our outrage over that corruption cannot prevent us from building a foundation for responsible innovation in this space. If we don't lead, others will, and not in ways that reflect our interests or democratic values." Independent Community Bankers of America expressed concerns with the GENIUS Act in a letter to the Senate last month. Chief among those concerns was language that it believed would allow non-bank issuers to obtain Federal Reserve Master Accounts. The current version of the bill has addressed that language, according to the ICBA. "On behalf of the nation's community bankers, ICBA appreciates the work by the Senate to address concerns raised by ICBA with the GENIUS Act throughout the legislative process in order to provide regulatory clarity while protecting against the negative economic consequences that would result from community bank disintermediation," Rebeca Romero Rainey, ICBA president and CEO, said in a statement. Catalini said that he expects more regulations to follow due to Trump's support of cryptocurrency. "We need new rules for market infrastructure, tax treatment and more," he said. "No bill is perfect but the GENIUS Act is an important first step in ensuring consumers and businesses are appropriately protected when paying for holding a balance in stablecoin." Sen. Josh Hawley, R-Mo., and Sen. Rand Paul, R-Ky., voted against ending debate on the bill. They did not respond to requests for comment.
CNBC
18-06-2025
- Business
- CNBC
Shares of Coinbase, Circle surge after stablecoin bill passes Senate
Shares of Circle and Coinbase rallied on Wednesday, as Wall Street cheered the Senate's passage of the GENIUS Act, which would establish a federal framework for U.S. dollar-pegged stablecoins. Circle, the issuer of the USDC stablecoin, rose 22% following the passing of the bill late Tuesday. It's the continuation of a remarkable run for Circle's stock since the company held its stock market debut on June 5. The shares are trading at about $180, up almost sixfold from their $31 IPO price. Coinbase, which co-founded USDC and shares in 50% of its revenue with Circle, gained more than 10%. Stablecoins have become Coinbase's biggest revenue driver after trading, with stablecoin-related income surging 50% year-over-year in the first quarter. The GENIUS Act, short for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, allows private companies to issue stablecoins under strict guardrails, including full reserve backing and monthly audits. It represents the crypto industry's first major legislative win, but still has to get signed into law. The bill now heads to the House, which has its own version of a stablecoin bill dubbed STABLE. Both prohibit yield-bearing consumer stablecoins, but diverge on who regulates what. The Senate version centralizes oversight with Treasury, while the House splits authority between the Federal Reserve, the Comptroller of the Currency, and others. Reconciling the two could take a while, especially as House Republicans weigh attaching a broader market structure package, according to congressional aides. If the GENIUS Act becomes law, it could pave the way for explosive growth in the nearly $260 billion stablecoin market, and drive more revenue to key infrastructure players like Circle and Coinbase. Coinbase earns 100% of the interest on USDC held directly on its platform. CEO Brian Armstrong has said he wants USDC to overtake Tether as the world's top stablecoin. "If you can get shared economics, I don't see why we wouldn't see more of these banks partnering with USDC," Armstrong said last month, calling stablecoins a major pillar of Coinbase's long-term growth.
CNBC
17-06-2025
- Business
- CNBC
Senate passes landmark GENIUS stablecoin bill, giving crypto industry its first major win
The Senate on Tuesday passed the GENIUS Act, a landmark bill that for the first time establishes federal guardrails for U.S. dollar-pegged stablecoins and creates a regulated pathway for private companies to issue digital dollars with the blessing of the federal government. The bill passed with a 68-30 vote. It's a milestone day for the crypto industry and for President Donald Trump's sprawling digital asset empire. This is the first legislative victory for the digital asset industry, which put around $250 million in the 2024 cycle to elect what's now considered to be the most pro-crypto Congress in U.S. history. The bill still faces hurdles in the Republican-held House, but passage in the Senate signals a turning point — not just for the technology, but for the political clout behind it. The GENIUS Act, short for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, sets guardrails for the industry, including full reserve backing, monthly audits, and anti-money laundering compliance. It also opens the door to a broader range of issuers, including banks, fintechs, and major retailers looking to launch their own stablecoins or integrate them into existing payment systems. The bill grants sweeping authority to Treasury Secretary Scott Bessent, who last week told a Senate appropriations subcommittee in a hearing that the U.S. stablecoin market could grow nearly eightfold to over $2 trillion in the next few years. "Stablecoin legislation backed by U.S. Treasuries or T-bills will create a market that will expand U.S. dollar usage via these stablecoins all around the world," Bessent said. GENIUS now heads to the House, which has its own version of a stablecoin bill dubbed STABLE. Both prohibit yield-bearing consumer stablecoins — but diverge on who regulates what. The Senate's version centralizes oversight with Treasury, while the House splits authority between the Federal Reserve, the Comptroller of the Currency, and others. Reconciling the two could take a while, according to Congressional aides. The GENIUS Act was supposed to be the easiest crypto bill to pass, but took months to reach the Senate floor, failed once, and passed only after fierce negotiations. "We thought it would be easiest to start with stablecoins," Sen. Cynthia Lummis, R-Wyo., said on stage in Las Vegas at this year's Bitcoin 2025 conference, which focused heavily on stablecoins. "It has been extremely difficult. I had no idea how hard this was going to be," she said. At the same event, Sen. Bill Hagerty, R-Tenn., echoed the frustration: "It has been murder to get them there," he said of the 18 Senate Democrats who ultimately crossed the aisle. Stablecoins are a subset of cryptocurrencies pegged to the value of real-world assets. About 99% of all stablecoins are tethered to the price of the U.S. dollar. The appeal is simple: Stablecoins offer instant settlement and lower transaction fees, cutting out the middlemen and directly threatening legacy payment rails. Shopify has already rolled out USDC-powered payments through Coinbase and Stripe. Bank of America's CEO said last week at a Morgan Stanley conference that they're having conversations with the industry and individually exploring stablecoin issuance. Payment stocks like Visa, Mastercard, PayPal, and Block slid after The Wall Street Journal reported that Amazon and Walmart are exploring their own stablecoins. That action has helped drive Circle's blockbuster stock surge, with shares up 400% since its public debut on June 5. Deutsche Bank found that stablecoin transactions hit $28 trillion last year, surpassing that of Mastercard and Visa, combined. Still, there are limits. The GENIUS Act limits non-financial Big Tech companies from directly issuing stablecoins unless they establish or partner with regulated financial entities — a provision meant to blunt monopoly concerns. JPMorgan, meanwhile, is taking a different route, launching JPMD, a deposit token designed to function like a stablecoin but tightly integrated with the traditional banking system. Issued on Coinbase's Base blockchain, JPMD is only available to institutional clients and offers features like 24/7 settlement and interest payments — part of the broader push by legacy finance to adapt to the stablecoin era without ceding ground to crypto-native firms. While Democrats tried to amend the bill to prevent the president from profiting off crypto ventures, the final legislation only bars members of Congress and their families from doing so. Trump's first financial disclosure as president, released Friday, revealed he earned at least $57 million in 2024 alone from token sales tied to World Liberty Financial, a crypto platform closely aligned with his political brand. He holds nearly 16 billion WLFI governance tokens — the crypto equivalent of voting shares — which could be worth close to $1 billion on paper, based on prior private sales. That's just one slice of the Trump crypto pie. The family's ventures, which include the controversial $TRUMP meme coin, a $2.5 billion bitcoin Treasury and proposed bitcoin and ether ETFs via and a newly launched mining firm called American Bitcoin, reflect a full-throttle push into digital finance. Forbes recently estimated Trump's crypto holdings at nearly $1 billion, lifting his total net worth to $5.6 billion.
Yahoo
14-06-2025
- Business
- Yahoo
America's Dollar Dominance Depends on GENIUS
We are closer than ever to cementing America's global leadership in digital asset innovation. Next week, the Senate will hold its final vote on the Guiding and Establishing National Innovation for U.S. Stablecoins Act – the GENIUS Act – bringing this landmark stablecoin legislation one step closer to becoming law. Following Senate passage, the bill will advance to the House for consideration. This marks a significant step forward – not just for the crypto industry, but for American consumers, investors, and the global strength of the U.S. dollar. The numbers tell the story. Today, more than $190 billion in dollar-backed stablecoins are in circulation worldwide, doubling annually. Stablecoins aren't speculative crypto assets – they are digital dollars that enable instant, low-cost transactions anywhere in the world. In regions facing currency devaluation or authoritarian financial controls, stablecoins provide access to the economic stability of the U.S. dollar. Not only is this pro-innovation – it's pro-democracy. The GENIUS Act provides the clarity the industry urgently needs. By establishing sensible guidelines, it ensures stablecoins maintain stable value through high-quality liquid reserves, regular audits, and clear redemption rights. These aren't excessive burdens – they're reasonable protections already practiced by responsible issuers. Most importantly, what the GENIUS Act provides is certainty, allowing responsible innovation to flourish while preventing bad actors from undermining the system. Passing GENIUS can't wait. As other nations develop central bank digital currencies and alternative payment systems designed to circumvent dollar dominance, the United States faces a choice: embrace the innovation that's already spreading dollars globally, or cede this ground to other countries. The legislation provides the framework we need – strong reserve requirements, transparency rules, and consumer protections – without stifling the innovation that makes stablecoins so powerful. Progress on stablecoin legislation has been bipartisan, reflecting a growing recognition across the political spectrum that this technology serves American interests. Republicans see free-market innovation and reduced government intervention. Democrats value the financial inclusion and consumer protection aspects. Both parties understand that maintaining dollar supremacy isn't partisan – it's patriotic. Globally, stablecoins are already making a profound difference. In Argentina, where inflation has exceeded 100%, residents use dollar stablecoins to preserve their savings. In Ukraine, humanitarian organizations have used them to deliver aid instantly when traditional banking channels failed. Across Africa and Southeast Asia, entrepreneurs have access to dollar liquidity and can build businesses that connect to the global economy. Each transaction strengthens the dollar's role as the world's reserve currency. The technology community knows what's on the line. That's why companies of all sizes – from traditional financial institutions to Silicon Valley startups – want clarity around stablecoins. They're not asking for light-touch regulation or special treatment; they're asking for clear rules that allow them to build in America, serve American interests, and extend American financial leadership globally. Meanwhile, every month that goes by, more stablecoin activity moves offshore, more innovation happens outside our borders, and more ground is ceded to competitors. The European Union has already implemented stablecoin guidelines. Singapore, the UAE, and others are rolling out frameworks to attract this activity. Dollar-backed stablecoins don't compete with the Federal Reserve; they extend its reach. They don't undermine American banking; they create new customers for it. They don't weaken financial oversight; they make it more effective through programmable compliance and real-time transparency. Stablecoins are foundational infrastructure, not ideology. Passing the GENIUS Act requires no vast expenditures or bureaucratic complexity. It simply offers clear rules for American innovation to thrive, safeguards consumers, and fortifies the dollar's global influence. The message to Congress is clear: Don't let this moment pass. The world won't pause while America deliberates. With the GENIUS Act, we can ensure that the future of global finance remains dollar-denominated, governed by American values, and powered by our unmatched American ingenuity. Sign in to access your portfolio
