The Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 Act (GENIUS Act) is at a critical juncture as the Senate grapples with a substantial number of proposed amendments. This playing field leveling legislation would be a first of its kind in the United States. Specifically, it seeks to establish a regulatory framework for stablecoins — cryptocurrencies that are pegged to relatively stable assets, such as the U.S. dollar. With 122 amendments still pending to be considered, the thoroughfare from a bill introduction to law looks filled with obstacles and fierce opposition.

On June 9, Senate Majority Leader John Thune rescued the GENIUS Act and filed for cloture. This action made way for an important vote to come. The bill will require 60 votes to overcome a likely filibuster. That’s because of the extraordinarily strong bipartisan support it will need to pass. The GENIUS Act pushes the envelope on the U.S. commitment to financial innovation. It defines what winning looks like, not just in terms of progress, but systemic stability. If the GENIUS Act makes it through Congress, it could be law as soon as three weeks from now.

Key Provisions of the GENIUS Act

The GENIUS Act would direct the Financial Stability Oversight Council to establish a regulatory framework for stablecoins. It stipulates that each stablecoin be fully backed—one-to-one—with reserves maintained in safe, short-term assets such as federal borrowing. This is an important consumer protection principle, providing confidence that stablecoin holders can at all times exchange their tokens for their full value in the underlying asset. In so doing, it prevents the danger of a possible “run” on the stablecoin. These stablecoins would be federally or state regulated. They should set up a supervisory framework to ensure compliance and address emerging issues.

The tech sector is all-in on GENIUS Act. They view it as an important step for delivering regulatory clarity in the rapidly expanding stablecoin ecosystem. JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup are coordinating on the potential launch of a jointly operated stablecoin. This action reflects their deep desire to see stablecoin technology capitalize and establish its footing within the traditional banking ecosystem.

The GENIUS Act now includes many other provisions that would be hugely disruptive to the legacy payments and banking industry. These provisions illustrate the current state of play in the debate over how best to regulate stablecoins. Lawmakers are clearly in a high stakes race to figure out how to let innovation flourish while protecting taxpayer dollars.

Contentious Amendments and Industry Concerns

The GENIUS Act has already been subject to a barrage of proposed amendments. One amendment, Amendment 2239, to S.1582 has created a firestorm of protest and confusion. This amendment would put federal government price controls on private sector products. It would do so by capping the annual percentage rate (APR) for credit cards at 10%. Critics argue that such a measure would stifle competition, limit access to credit for many consumers, and ultimately harm the financial industry.

This amendment reflects the increasing fears of members of Congress. It is the belief of many that a small but determined group are using the GENIUS Act’s popularity to advance their own, unrelated policy goals. Over 3 dozen new amendments were filed just between Monday and Tuesday, June 10. In doing so, this whopping tome exhibits the myriad clout and the myriad passions acutely animating and, indeed, winning the debate over how to regulate the ostensible benefits of stablecoins.

Sen. John Thune has pledged an open amendment process as the GENIUS Act moves toward its final passage, signaling a willingness to consider a wide range of proposals and address the concerns of various stakeholders. All of these amendments combined have created a situation where it isn’t possible for all members to get on the same page. The controversial nature of certain proposals further calls into question enacting the bill into law in its present form.

Future Outlook

The GENIUS Act represents a critical effort to establish a clear and consistent regulatory framework for stablecoins in the United States. With the Senate still debating the bill and huge potential for hundreds of amendments still to be introduced, it’s all still to play for. The decisions they make in the next few weeks will impact the future of digital assets. Just as important, they will affect the payments industry and the broader financial system in fundamental ways.

Their GENIUS Act has quickly become the fulcrum of these discussions about how to encourage and enable innovation while ensuring proper regulatory oversight. Its future success will almost certainly dictate how other countries handle challenges and opportunities posed by stablecoins and digital currencies themselves.