In Washington, the genius law, which seeks to regulate the stablcoins, faces a divided Senate and a watch that does not forgive, with the risk of leaving the US.
After the rejection of the law by a narrow margin of 48-49 on May 8, due to the controversy on the investments in cryptocurrencies of President Donald Trump, as reported by cryptootics, now, the senators of both parties (Republican and Democrat) They work to reactivate legislation on Stablecoins.
The approval of the bill before the recess of the Fallen Day is expected, which corresponds to the last Monday of May, which will be next 26. And while that moment comes, some legislators, such as Democrat Angela Alsobrooks, agree that they are working to boost legislation.
Republican senator Bill Hagerty, from Tennessee, the main driver of the legislation, he declared in an interview in the Capitol that the staff of both parties have continued working on the bill. According to Bloomberg, He expressed his hope that the Democrats agree to approve the initiative before the recesssince after that, the Senate will focus on the package of taxes and emblematic expenses of the Republican Party. «Now is the time,» said Hagerty. «We will see if the sensibleness prevails.»
So, as hours pass, expectations increase. And in the midst, the lawyer and defender of cryptocurrencies John Deaton warned that the failure of this legislation could delay any significant reform until 2029, leaving the industry trapped in an obsolete regulatory limbo.
Deaton, known for his defense of the cryptocurrency industry, especially in cases against the SEC, said that the Genius law is an «obvious» that any politician should support whether to prioritize national interests on partisan policy.
The domain of the dollar is at stake
John Deaton coincides with other users in which the genius law should be called “Dolk Law of the Dolk”, since its impact transcends cryptocurrencies. He explained that, in a global context where countries like China and Russia promote disdain, The stablecoins backed by the dollar could reinforce the demand for treasure bonds and consolidate the status of the dollar as a world reserve currency.
«We are in an era where other nations try to defoar the world. We must ensure that the dollar remains dominant,» said Deaton.
In addition, Deaton criticized the extreme changes in the cryptocurrency policy with each presidential administration in the United States, where it has gone from a repressive approach («government dominating the industry») to an ultra -capital cryptocurrency posture. This, with Trump, launching «presidential memecoins.»
Similarly, in its publication, Deaton regretted that the laws of 1933 (Securities Act) and the jurisprudence of 1946 (case V. Howey) are applied to modern technologies such as cryptocurrencies and artificial intelligence (AI), generating an obsolete “regulatory limbo”.
The main stablcoins issuers received the Genius bill in a mostly positive way, especially Circle, the company behind USDC, one of the most used stablcoins in the United States. Industry participants argue that Regulatory clarity could facilitate a broader adoption of stablecoins in traditional financial marketsmaking them more accessible to companies, banks and consumers.
The cryptocurrency industry asks for clarity
Additionally, several industry leaders believe that the approval of the Genius law is key to reducing regulatory uncertainty, which is essential to integrate stablcoins into conventional finances. Establishing clear legal guidelines could encourage financial institutions and payment networks to adopt Stablecoins, positioning the US as a world leader in digital dollars.
Despite the support of the industry, the Genius law has generated criticism of legislators and regulatory agencies concerned about their possible implications. Some critics fear that the bill does not sufficiently add the risks related to financial stability. They are concerned that the broad -scale stablcoins issuance can lead to disintermediation in the banking sector.
Others argue that the participation of technological giants, such as X from Elon Musk (previously Twitter), could introduce systemic risks, especially if companies begin Issue your own stablecoins to compete with coins backed by the Government.
Senator Elizabeth Warren has expressed concerns about the possibility of large corporations using Stablecoins to avoid traditional financial regulations. «Without adequate safeguards, we could see the big technology creating their own currencies, undermining the US dollar and our financial system,» he warned.
Democratic legislators have also proposed national security amendments to prevent Stablecoins emitters from evading the US sanctions laws. These amendments are specifically addressed to Stablecoins issued abroad, such as Tether (USDT), which have been examined by their possible use in illicit financial activities.
Will the genius law triumph?
So, with all this to analyze, the genius law is currently in legislative review, with The Senate Banking Committee scheduled to vote on the bill. The bipartisan support gives you a solid base. However, the final version could experience significant amendments before reaching the Senate Plenary.
If approved, the bill could lay the foundations for a financial ecosystem driven by Stablcoins in the US., Closing the gap between traditional finances and digital assets. However, if the opposition of regulatory agencies and skeptical legislators gain strength, the regulation of Stablecoins could continue to face obstacles, leaving the industry in uncertainty.