President Donald Trump has urged the House of Representatives to pass the GENIUS Act without changes or delays. The Senate passed the bill with bipartisan support, marking a major step toward federal stablecoin regulation. Trump wants the legislation on his desk immediately and has warned lawmakers against altering its language.
GENIUS Act Gains Momentum as Trump Demands Swift Action
The Senate approved the GENIUS Act with a 68–30 vote, including support from 18 Democrats. This move positions the bill for House debate, where Republicans hold a narrow majority. Trump emphasized urgency and directed GOP leaders to act without adding amendments.
The legislation establishes clear federal standards for issuing and backing stablecoins. It requires issuers to maintain full 1:1 dollar reserves for every token in circulation. Additionally, it restricts the use of reserves to redemptions and low-risk assets like Treasury repos.
Trump‘s push appears strategic, as he seeks to cement control over digital asset policy during his presidency. Lawmakers from both parties have acknowledged the need for regulation. Yet concerns persist over Trump’s personal and financial ties to the crypto sector.
Controversy Grows Around Trump’s Ties to Stablecoins
Trump has been linked to a USD1-branded stablecoin that reportedly generated $57 million in revenue last year. Critics argue the bill allows Trump to profit from the industry while signing its regulations into law. Although the bill bans congressional profiteering, it does not cover the president or his family.
Senator Elizabeth Warren protested against these conflicts, fearing that there could be an ethical violation. Similar concerns would be heard by other senators such as Mark Warner, who nonetheless voted in favor of the bill because of larger policy purposes. This has brought a form of tension in the debate between regulation and ethics.
While Democrats remain split, House Republicans largely back the bill due to Trump’s direct endorsement. Trump’s firm stance is likely to minimize opposition within the party ranks. Nevertheless, House debate would once again cause an ethical controversy and hold back the final vote.
Stablecoin Sector Welcomes Regulation but Faces Tradeoffs
Major crypto firms support the GENIUS Act as it offers regulatory clarity after years of uncertainty. Interest groups would lobby in Washington to influence the eventual wording of the legislation. Industry leaders now expect investor confidence in the industry and stable growth.
However, tiny stablecoin issuers worry that the bill will lead them back to the exit because of its stringent compliance requirements. These provisions include anti-money laundering verification, consumer protection, and restrictions on yield-bearing stablecoins. Others have claimed that such actions favor heavy players and disadvantage competition.
Interest-bearing tokens have been banned, but this has met with resistance because developers claim it hinders blockchain innovation. However, legislators claim that the idea is to comply with financial safety criteria. Trump, despite his business interests, has remained silent on those specific provisions.
FAQs
What is the GENIUS Act?
The GENIUS Act is a bill regulating US dollar-backed stablecoins through federal licensing and compliance rules.
What does the bill require from stablecoin issuers?
Issuers must maintain full 1:1 dollar backing and follow reserve and consumer protection requirements.
Why is Trump pushing for no amendments?
Trump wants to avoid delays and preserve the current language that benefits his administration’s regulatory stance.
Are lawmakers concerned about Trump’s involvement?
Yes, some have raised ethical concerns about his personal stablecoin business ties, though the bill excludes presidential restrictions.
What are the bill’s biggest criticisms?
The act may stifle innovation, increase compliance costs, and favor large firms while sidelining smaller crypto companies.
Glossary of Key Terms
Stablecoin – A cryptocurrency designed to maintain a stable value by being pegged to a fiat currency like the US dollar.
1:1 Backing – A reserve mechanism ensuring each digital coin is backed by an equivalent dollar in a regulated account.
Treasury Repos – Short-term borrowing tools involving US Treasury securities, often used in low-risk investment strategies.
AML (Anti-Money Laundering) – Financial regulations to prevent the use of crypto for illegal financial activities.
Yield-Bearing Tokens – Digital assets that offer interest or rewards, which the GENIUS Act seeks to prohibit.
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