Overview
- On June 5, Senate Democrats joined Republicans to clear a filibuster and move the GENIUS Act toward final passage by a simple majority vote
- The bill would establish federal oversight of stablecoins, aiming to legitimize a $246 billion market and potentially expand it toward $2 trillion by 2028
- A provision would require banks to repay stablecoin holders before other customers if an institution fails, sparking consumer protection and subsidy concerns
- World Liberty Financial, majority owned by the Trump family and issuer of the USD1 stablecoin, stands to gain transaction fees and interest on reserve holdings
- Crypto firms spent over $200 million in the 2024 election cycle to support pro-crypto candidates, with several senators who advanced the Act having received industry contributions