- Senate moves forward on GENIUS Act to set rules for stablecoins and increase oversight.
- House reintroduces bill to protect blockchain developers from strict financial licensing.
- Lawmakers work to create clearer regulations for digital assets and blockchain software.
The US Senate approved a motion to begin debate on the Government and Enterprise Need for Innovation in the United States Act (GENIUS Act). By a vote of 69 to 31, the bill was approved for discussion and amendment. The earlier 66 to 32 vote on May 19 indicated that the core aims of the bill had support from both political parties.
GENIUS Act Targets Stablecoin Regulation
The GENIUS Act aims to set clear rules for stablecoin issuers. It requires issuers to hold high-quality liquid assets, such as US Treasuries or insured deposits. These reserves must fully back all outstanding liabilities at a one-to-one ratio.
The bill bans yield-bearing stablecoin products. It also mandates issuers to follow strict know-your-customer procedures, monitor suspicious activities, and enforce anti-money laundering controls. Depending on their size, issuers would operate under federal or federally certified state supervision.
The Senate’s open-ended debate process allows members to propose and review amendments. This step will refine the bill before the final vote.
House Reintroduces Blockchain Regulatory Certainty Act
While the Senate progresses with the GENIUS Act, the House has reintroduced a separate bill focused on blockchain developers. Representatives Tom Emmer and Ritchie Torres filed the Blockchain Regulatory Certainty Act to clarify regulatory obligations.
The bill offers a federal safe harbor for software developers and blockchain service providers who do not hold customer assets. It prevents them from being classified as money transmitters or financial institutions just for maintaining blockchain software.
The bill defines “blockchain developer” as any entity creating or supporting software for decentralized networks. It explains “control” as the legal ability to access and transact with digital assets without needing a third party.
Developers or service providers would not face state or federal licensing unless they control users’ digital assets. The bill also respects intellectual property laws and allows states to apply compatible regulations.
Legislative Outlook
The House has yet to schedule a markup or floor vote on the Blockchain Regulatory Certainty Act. Still, its reintroduction signals growing focus on distinguishing custodial from non-custodial roles in the digital asset space.
Both bills reflect lawmakers’ efforts to create clearer frameworks for blockchain technology and digital assets. These efforts may impact how stablecoins and blockchain software operate under federal and state laws.
