- The House has approved the GENIUS Act to regulate stablecoins, with a vote of 308 to 122.
- The Senate has already passed the GENIUS Act, making it ready for presidential signature.
- Two other crypto-related bills, the Clarity Act and the Anti-CBDC Surveillance State Act, passed in the House and await Senate approval.
- The GENIUS Act reduces the Federal Reserve’s direct oversight of stablecoins, shifting key responsibilities to the Treasury, OCC, and states.
- Critics say the new rules could weaken the Federal Reserve’s role in safeguarding financial stability.
On Tuesday, the U.S. House of Representatives passed the GENIUS Act to set new rules for stablecoins, receiving broad support from both parties with a 308 to 122 vote. The Senate has already approved the bill, which means it now goes to President Donald Trump for signing.
Two additional cryptocurrency-related bills advanced in the House: the Clarity Act, which sets standards for crypto market infrastructure, passed with 294 votes in favor and 134 opposed. The Anti-CBDC Surveillance State Act, designed to block the creation of a central bank digital currency (CBDC), passed by a narrower 219 to 210 margin. Both bills now need Senate consideration before becoming law.
According to the source, the GENIUS Act is expected to bring much needed regulatory clarity to the growing stablecoin sector. However, the legislation significantly limits the Federal Reserve’s role in stablecoin oversight. Instead, most regulatory duties will be shared by the states, the Department of the Treasury, and the Office of the Comptroller of the Currency (OCC), with the OCC reporting to the Treasury. In crisis situations, the Treasury can grant exemptions from the GENIUS Act’s requirements.
Democrats who opposed the GENIUS Act often focused on concerns about President Trump’s potential conflicts of interest, even as some critics pointed out that the law “undermines the Fed’s traditional role in financial stability.”
Under the previous administration, banking regulators limited access between banks and cryptocurrency companies, which resulted in the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve being sidelined from key oversight responsibilities.
Key provisions of the GENIUS Act require stablecoin issuers to follow new rules, but in urgent cases the Treasury can permit exceptions. The Treasury, as issuer of U.S. government debt, may face a conflict if the stablecoin industry becomes a major buyer of Treasury bonds, as increased demand can lower borrowing costs for the government.
If money stays in stablecoins outside traditional banks, this could make it harder for the Federal Reserve to manage monetary policy—steps the central bank uses to influence the economy—while still leaving it responsible for overseeing financial stability.
Critics suggest that by reducing the Federal Reserve’s powers, the GENIUS Act could weaken the United States’ ability to control its monetary system, potentially affecting the global role of the dollar.
Less central but still notable, the legislation’s approval follows calls from some experts for clear rules as stablecoins become more widely used payment tools. The outcome of the bills in the Senate and the impact on the Federal Reserve’s authority remain to be seen.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- XRP Surges to New High After US House Passes Crypto Regulation Bills
- US House Passes GENIUS Act, Marking Landmark for Crypto, Stablecoins
- Crypto Market Cap Hits Record $4T as US House Passes Key Bills
- House Passes Historic Crypto, Stablecoin Bills With Bipartisan Support
- Volcon Raises $500M for Bitcoin Treasury, Stock Jumps 135%
