US Senate’s GENIUS Bill: A Comedy of Errors and Crypto

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Well now, gather ’round, folks! The good ol’ US Senate has decided to take a leap into the wild world of stablecoins, much like a cat leaping into a bathtub—full of trepidation and a splash of chaos. After a ruckus earlier this May, where some Democrat Senators threw a fit over President Donald Trump’s crypto kingdom, they’ve finally voted to advance a bill that’s as ambitious as a raccoon in a garbage can.

On May 20, in a vote that could only be described as a political game of musical chairs, the Guiding and Establishing National Innovation for US Stablecoins Act—affectionately known as the GENIUS Act—sailed through with a score of 66-32. It seems some Democrats decided to change their tunes, perhaps realizing that the Senate floor isn’t the best place for a good ol’ fashioned filibuster.

Now, Republican Senator Cynthia Lummis, bless her heart, thinks it’s a “fair target” to have this GENIUS Act passed by May 26—just in time for Memorial Day, when we all remember the brave souls who fought for our right to argue about cryptocurrency over hot dogs. 🍔

This GENIUS Act, introduced by Senator Bill Hagerty on February 4, aims to wrangle the nearly $250 billion stablecoin market, which is currently being run like a circus by Tether (USDT) and Circle’s USDC. The bill insists that stablecoins be as solid as a rock, fully backed, and subject to regular security audits—because who doesn’t love a good audit? Only licensed entities will be allowed to issue these coins, while algorithmic stablecoins are getting the boot, much like a bad actor in a melodrama.

But hold your horses! Just a week prior, several Democratic senators pulled their support faster than a rabbit in a hat, citing concerns over potential conflicts of interest involving Trump’s crypto escapades and some pesky anti-money laundering provisions. It’s like watching a soap opera unfold, with plot twists that would make your head spin.

After a bit of revision, the bill managed to gather enough bipartisan support to waltz its way to a vote. It’s a classic tale of political maneuvering, where the only thing more tangled than the legislation is the web of interests behind it.

Hagerty’s stablecoin bill is built upon the bones of a discussion draft he submitted for former Representative Patrick McHenry’s Clarity for Payment Stablecoins Act back in October. It’s a wonder how many drafts it takes to get to the final act in this legislative play!

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2025-05-20 04:52