TLDR
- Coinbase CEO urges Senate to budge the GENIUS Act before August.
- The GENIUS Act would require stablecoins to be 1:1 backed and federally licensed.
- Some Democrats oppose the invoice over security and AML concerns.
- Crypto leaders enhance the invoice for certain national stablecoin suggestions.
- WLFI to start USD1, a stablecoin backed by Treasuries and money.
Coinbase CEO Brian Armstrong has renewed calls for legislative high-tail as the GENIUS Act moves closer to Senate debate. The bipartisan invoice targets to set a national framework for stablecoin law, offering certain requirements for issuers and market contributors. Armstrong emphasised the urgency in a most well liked put up, urging lawmakers to act before the August recess.
Congress has a valid exchange this week to map stablecoin and market structure legislation. We strongly enhance the Senate starting up debate on the GENIUS Act — and we desire 60 votes to gather there. We additionally welcome Condo efforts to possess on FIT21’s momentum. Every chambers want…
— Brian Armstrong (@brian_armstrong) Could well also fair 6, 2025
The GENIUS Act would require stablecoin issuers to retain a national license and lend a hand all tokens 1:1 with U.S. greenbacks or equivalents akin to insured financial institution deposits or quick Treasury securities. A 3-year transition duration would possibly per chance per chance well be granted for service suppliers to conform fully with the new framework. The invoice is severe to regulating the digital buck whereas making improvements to individual protection and enterprise compliance.
Democratic Opposition Raises Regulatory Concerns
Despite bipartisan origins, the GENIUS Act is facing resistance from some Senate Democrats. Concerns about in all probability national security risks and the want for stronger anti-money laundering provisions were raised. These concerns would possibly per chance per chance also hinder the invoice’s momentum within the Senate, where 60 votes are required to start formal debate.
The hesitation displays broader tensions spherical crypto legislation, with lawmakers balancing innovation with regulatory safeguards. While the crypto industry broadly supports the act, divisions in Congress would possibly per chance per chance also extend development unless compromises are reached. The will form the route of future legislation aimed toward digital assets.
Industry Give a enhance to for Definite Stablecoin Framework
The GENIUS Act has got backing from industry leaders and analysts who argue that stablecoin law is lengthy overdue. Crypto analyst Gage Salicki described the legislation as indubitably one of basically the most valuable regulatory efforts in most well liked years, highlighting its in all probability to affirm structure to a largely unregulated dwelling.
Armstrong’s feedback align with broader sentiment across the digital asset sector, which has lengthy requested a federal regulatory pathway. The dearth of uniform steering has introduced on operational uncertainty and regulatory fragmentation across states. The GENIUS Act seeks to solve these points by making a unified, enforceable federal popular for stablecoin issuers.
WLFI to Begin USD1 Stablecoin Backed by Prone Belongings
Within the meantime, World Liberty Financial Inc. (WLFI) supplied the upcoming start of USD1, a new stablecoin backed completely by quick U.S. Treasuries, U.S. buck deposits, and money equivalents. The USD1 token will be deployed on Ethereum and Binance Neat Chain, with plans to expand to additional blockchain networks.
As Congress considers the GENIUS Act, the crypto industry continues to recommend for federal clarity on stablecoins. The invoice’s future within the Senate remains unsure, but its passage would possibly per chance per chance also sign a turning point in U.S. digital asset protection.
