- Bipartisan talks advance, but Senate procedures may stall the GENIUS Act progress.
- John Deaton warns U.S. crypto reform may freeze until 2029 without the GENIUS Act.
- Senator Warren opposes the current draft, calls for tougher protections to safeguard users.
The GENIUS Act, a key piece of U.S. legislation designed to establish clear regulations for stablecoins, is close to being finalized but remains stuck in the US Senate. Introduced by Senator Bill Hagerty, the Act proposes a structured approach to regulating stablecoins by defining key terms, establishing reserve requirements, and outlining the roles of both federal and state regulators.
The bill’s intent is to create a regulatory environment that supports innovation while ensuring necessary oversight to protect financial stability.
Bipartisan Progress on Bill Text Reported, Procedural Steps Weighed
According to journalist Eleanor Terrett, after days of negotiations, a bipartisan group of Senators is close to agreeing on the final text of the GENIUS Act. She noted that Senate leadership is now considering the next steps, including how to handle amendments and whether to bring the bill back under reconsideration, signaling that progress is being made despite internal legislative gridlock.
Despite this progress, however, concern is growing that the Act may be delayed far beyond the current legislative window. According to advocate John Deaton, if the GENIUS Act fails to pass soon, crypto regulation could be stalled until 2029.
Related: What’s Driving XRP’s 22% Weekly Surge as It Overtakes USDT for Third Place?
Deaton stressed the importance of stablecoin adoption in maintaining the dominance of the US dollar as the global reserve currency and cautioned that missing this legislative opportunity could undermine the country’s position in digital finance.
Further, Deaton’s comments reflect fears within the crypto industry that continued inaction could drive innovation overseas and leave U.S. firms operating in regulatory uncertainty.
Senator Warren Demands ‘Serious Fixes’ for Consumer Protection
Meanwhile, Senator Elizabeth Warren voiced her strong opposition to the bill, calling for substantial revisions. In support of Connecticut Senator Chris Murphy’s concerns, Warren argued that without “serious fixes,” the bill would fail to provide the consumer protections and enforcement strength needed to prevent misuse of stablecoins.
Senator Warren reiterated her call for tougher regulations to guard against financial crimes and systemic risks.
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