GENIUS Act Passed by US Senate

This week, the GENIUS Act was approved by the US Senate as another step towards creating a framework regulating stablecoins. US Senators had a 66-32 vote which advanced the GENIUS Act into the next stage of approval. The bipartisan vote passed cloture, allowing the bill to proceed to full Senate debate and possible amendments.

Sen. Bill Hagerty (R-TN) introduced the bill to tighten rules for stablecoin issuers. It mandates full dollar or liquid asset reserves. Issuers must undergo regular audits and meet stricter standards if they issue over $50 billion in tokens. Additionally, it extends oversight to foreign issuers to reduce financial risk and curb misuse.

US Lawmakers Discussed Key GENIUS Act Proponents

Last week, the GENIUS Act failed to pass with a 48-49 voting from the US Senators. The majority of the lawmakers who voted against the bill raised concerns over specific security and safeguards. 

Namely, they pointed out weak protections for consumers, a lack of accountability for corporate issuers, and some ethical rule exclusions. This includes the exclusion of former President Donald Trump, who is a known crypto supporter, from ethical rules.

However, behind-the-scenes talks shifted the political momentum, according to news reports. Some Democrats gained concessions on consumer protections and tech ethics. They also addressed conflicts of interest to ensure the bill will enforce proper stablecoin regulations on all parties involved. 

Notably, one rule extends ethics standards to all government employees, including Elon Musk. But the omission of President Trump from such rules and regulations continue to raise eyebrows of some lawmakers.

The Senate Banking Committee approved the bill on Mar. 13 with bipartisan backing. Democratic sponsors later withdrew, yet support remained strong. The bill now appeals to both parties and offers a clear federal framework for stablecoin issuance and regulation. A final vote on the GENIUS Act may occur later this week.

What Does This Mean for iGaming?

The US Senate's passage of the GENIUS Act marks a major step toward stronger regulation in the digital currency space. The bill creates clear federal guidelines for stablecoin issuance, aiming to boost transparency and trust. 

Supporters argue it will attract more responsible players to the market and reduce financial risk. Importantly, the law may impact iGaming such as crypto casinos, which often operate in loosely regulated environments. By enforcing full-reserve requirements and regular audits, the Act limits opportunities for abuse.

Moreover, the legislation introduces oversight for foreign issuers, helping close loopholes that bad actors could exploit. As a result, experts expect a safer landscape for crypto users and investors. While the GENIUS Act still awaits a final vote, its bipartisan support suggests strong momentum. 

If enacted, the bill could set a global example for digital asset regulation. Overall, the GENIUS Act promises a more secure and transparent future for stablecoins and crypto casinos alike.