GENIUS Act to be Voted on: What Will be the Result?

The U.S. Senate is getting ready for an important vote on the GENIUS Act (S.1582), scheduled for 4:30 pm Eastern Time on June 17. If the bill passes, it will move on to the House of Representatives.

What makes this moment so important is that the GENIUS Act could completely change how stablecoins are handled in the U.S. For both crypto users and traditional banks, this vote could bring new rules, new risks, and maybe even new opportunities.

Key Takeaways

The GENIUS Act could change how stablecoins are regulated, giving users more protection and adding new rules for issuers.

If passed, it might attract big investors and push crypto and traditional finance closer together.

Some lawmakers are worried it gives too much power to Big Tech, raising concerns about control and fairness.

What is the GENIUS Act and Why Does It Matter?

The full name of the GENIUS Act is the “Guiding and Establishing National Innovation for U.S. Stablecoins Act.” It’s a long name, but the idea is pretty clear. The bill is designed to create a clear structure for how stablecoins are treated under U.S. law.

One of the biggest points in the bill is that it would give stablecoin holders priority in situations where a stablecoin company or related financial institution becomes insolvent. In simple terms, it means if something goes wrong, stablecoin users would be more likely to get their money back.

This priority status could lead to major changes in how banks and crypto firms manage risk. If passed, stablecoin issuers would likely be subject to tighter rules. This could affect how they operate day to day, and might even impact how quickly they can move money or offer services. While the GENIUS Act might make things safer for users, it also adds a layer of complexity for companies.

Some senators, like Josh Hawley, have pushed back. Hawley warned that the bill could give too much power to Big Tech companies, allowing them to issue their own digital currencies. His concern is that large platforms like Meta or Twitter/X could gain an even stronger hold on financial services.

Even with that pushback, other voices from the financial world support the bill. Leaders from credit unions, for example, were involved in shaping the final version. The debate shows how tricky it is to balance innovation with security.

Read more: Stablecoin Genius Act Moves Forward: Why This is Important

What Happens If the GENIUS Act Passes?

If the Senate passes the GENIUS Act and it moves to the House, stablecoins in the U.S. could become much more regulated. That means stablecoin issuers may have to follow stricter guidelines, including keeping enough reserves and reporting regularly to regulators. This would bring stablecoins closer to how banks are currently monitored.

One of the expected effects is a change in liquidity across crypto markets. Since stablecoins are often used to buy and trade assets like Bitcoin and Ethereum, any shift in how they work could ripple out to other parts of the crypto world. If regulation makes stablecoins harder to issue or use, that could reduce how freely money moves through crypto platforms.

At the same time, the bill could help attract more institutional investors to crypto. Many large financial firms have avoided stablecoins because of the legal gray area. A clear legal framework could make them feel more comfortable joining the market, which could bring in new funds and new players.

For banks, the act introduces a new set of challenges. If stablecoin holders are placed ahead of other creditors in case of bankruptcy, it could change how banks manage their own risk. Credit risk models might need to be adjusted, and internal rules updated.

The GENIUS Act also leaves out some ideas that were considered earlier. Proposals to regulate third-party payment networks and set interest rate limits were removed. That means the final version of the bill focuses mostly on the stablecoin side, without digging into broader digital payment systems.

Overall, if the bill becomes law, we could see faster integration between crypto and traditional banking. But that depends on how smoothly companies can adapt to the new rules.

Read more: How Will the GENIUS Act Change Stablecoin Regulation in the US?

Market Reaction and What Comes Next

Source: CoinMarketCap

So far, the market seems steady. As of today, the price of Tether (USDT) remains stable at $1.00, and its market cap sits around $155 billion. Trading volume is high, reflecting that traders are paying attention, but not panicking. That stability shows that the vote, while important, has not triggered major fear or excitement yet.

Behind the scenes, both crypto firms and banks are likely preparing for different outcomes. A pass would mean months of adjustments as companies work to meet the new requirements. A rejection might keep things as they are, at least for now, but with more debate sure to follow.

It’s also possible that the U.S. could influence how other countries approach stablecoin regulation. If the GENIUS Act becomes law, it could act as a model, showing how to combine innovation with regulation in a large and active financial market.

The GENIUS Act is not just about rules. It’s about the future direction of finance in the United States. Whether you are a crypto trader, a bank executive, or just someone who wants to understand where money is heading, this vote is one to watch.

Read more: What is Stablecoin? Definition, Types, and Examples of Stablecoin

Conclusion

The GENIUS Act vote is a key moment for the future of stablecoins in the U.S. If it passes, the crypto and banking sectors will face big changes, especially around regulation, risk, and user protections. Whether you support tighter rules or prefer a freer market, one thing is clear: stablecoins are about to play a much bigger role in mainstream finance.

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FAQ

What is the GENIUS Act about?

It is a U.S. bill that aims to regulate stablecoins by giving users more protections and setting clear rules for issuers.

How will it affect crypto markets?

If passed, the act could change liquidity, attract big investors, and lead to stricter controls on stablecoin issuers.

Why is there opposition to the bill?

Some lawmakers worry it gives Big Tech too much financial power and creates new risks for the traditional banking system.

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