Revised GENIUS stablecoin bill heads to senate, bars Big Tech from issuing tokens

The US Senate is preparing to vote next week on a revised version of the GENIUS Act, a stablecoin-focused bill that has been updated to address concerns raised by Democratic lawmakers.

Last week, the bill stalled after several Democratic lawmakers withdrew support, citing gaps in anti-money laundering provisions, weak oversight for foreign stablecoin issuers, and a lack of enforcement tools.

In response, the bill’s sponsors have introduced key amendments to tighten regulatory controls and reinforce national security protections.

Key changes introduced into the GENIUS Act

According to available information, the updated bill strengthens clauses around financial integrity, consumer protection, and ethical standards.

It also introduces language targeting the influence of large technology companies and foreign entities in the digital currency space.

Meanwhile, one of the most significant changes is a provision that bars non-financial, publicly traded companies from issuing stablecoins unless they meet strict conditions. These include clear frameworks for risk management, data privacy, and fair business conduct.

Former FOX Business journalist Eleanor Terrett noted that the amendment aims to “maintain the separation between banking and commerce.”

This would essentially curb the financial ambitions of Big Tech companies like Meta, Google, Amazon, and Microsoft from launching digital currencies that could bypass regulatory scrutiny.

Notably, the revision comes shortly after reports revealed that Meta is in early discussions with crypto firms about enabling cross-border stablecoin payments on its platforms.

In addition, the revised bill also clarifies that stablecoins do not carry federal insurance protections, reducing the risk of consumer confusion and financial fraud.

All of these changes aim to establish clear legal boundaries while preserving the role of traditional financial institutions.

Crypto industry mobilizes ahead of vote

In the lead-up to next week’s floor vote, crypto advocacy groups have ramped up efforts to push the legislation through.

Stand With Crypto, a Coinbase-backed crypto advocacy group, has launched a campaign encouraging constituents to email their senators to support the bill.

Another crypto advocacy group, The Blockchain Association, echoed that sentiment, saying that moving the bill forward “would bring us one step closer to creating a bipartisan framework for stablecoins.”

Coinbase CEO Brian Armstrong joined the push, calling on the lawmakers “to create clear rules for crypto in America.” He added:

“52 million Americans have used crypto and want to see regulatory clarity.”

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