U.S. Senate to Vote on Historic Stablecoin Bill Ahead of the Memorial Day

The U.S. Senate is expected to vote on a landmark stablecoin legislation later this month. This is a significant development for the cryptocurrency industry in the country, which could potentially establish the first comprehensive federal framework for dollar-pegged digital assets.

According to the report by Politico, the Republican Party will present this long-anticipated legislation, which they have named the GENIUS Act. The legislation is expected to be presented before Memorial Day.

GENIUS Act Legislation

According to a report by Politico, the Republican senators were privately informed by Senate Majority Leader John Thune that the chamber may take up the GENIUS Act before the Memorial Day.

Formally known as the “Guiding and Establishing National Innovation for US Stablecoins Act,” the legislation aims to provide regulatory clarity for stablecoins like Circle’s USDC and Tether’s USDT. Both of these coins are widely used in the crypto market but have operated in a legal gray area.

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The goal of the GENIUS Act is to define standards for backing, issuance, and oversight of stablecoins. With this act in place, there will be transparency, financial stability, and consumer protection. Once passed, the legislation will represent one of the most consequential federal actions in the regulation of digital assets.

Expected Reaction of the GENIUS Act

The bill is expected to get bipartisan support, and several Democratic senators will be backing the proposal during the decision process. This bill will show a rare moment of unity on Capitol Hill regarding the new crypto policy, a space that is often marked by regulatory uncertainty and division.

A long-time advocate for digital assets and blockchain technology, Senator Cynthia Lummis (R-WY), confirmed the legislative momentum by sharing the news on X.com. Lummis has always advocated for improved oversight of the crypto sector. She has also been critical of the Federal Reserve’s inconsistent approach to digital currencies.

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Major stablecoin issuers are closely watching the impending vote. Tether is reportedly preparing a U.S.-focused version of its token in anticipation of a clearer legal framework. CEO of Tether, Paolo Ardoino, has indicated that the company’s strategic decisions rely on the outcome of U.S. regulatory developments.

With digital currencies becoming increasingly intertwined with the global financial system, the GENIUS Act could serve as a foundational step in legitimizing stablecoins within the U.S. economy, providing both investors and companies with long-sought clarity.