After months of heated Congressional debates, late-night negotiations, and a flurry of amendments, the GENIUS Act—a sweeping piece of legislation designed to bring federal oversight to the stablecoin industry—is now on the cusp of becoming law. With bipartisan support coalescing, insiders expect President Biden’s signature to finalize the bill before the end of June, marking a turning point for both the cryptocurrency sector and the broader U.S. financial system.
### A Long Road to Consensus
The path to this moment hasn’t been smooth. Republicans and Democrats clashed over key provisions, from consumer protections to national security concerns. Yet, after a critical procedural vote cleared the way, stakeholders now see few remaining obstacles.
Kristopher Klaich, Policy Director at The Digital Chamber, a leading blockchain advocacy group, expressed cautious optimism. *”I don’t foresee major hiccups at this stage,”* he told BeInCrypto. *”The industry has built substantial political capital over the past few years. Lawmakers who dig in their heels now risk paying a high price.”*
Taylor Barr, the organization’s Government Affairs Manager, noted that the bill had undergone 53 amendments—a testament to its complexity. While Majority Leader John Thune initially pushed for an exhaustive, amendment-by-amendment debate, Barr believes a more streamlined approach will prevail. *”Realistically, we’re looking at grouped amendments, cutting the process down to a matter of weeks,”* he explained.
### Why Stablecoins Matter
At its core, the GENIUS Act isn’t just about regulating digital assets—it’s about reinforcing the U.S. dollar’s global dominance. Stablecoins, which peg their value to fiat currencies like the dollar, have become a linchpin of international finance. Their transaction volumes now eclipse those of traditional payment giants; in 2024 alone, stablecoins facilitated $27.6 trillion in transfers, outpacing Visa and Mastercard combined, according to CEX.io.
Tether and Circle, the two largest issuers, control nearly 90% of the market. Their combined $210 billion in circulation underscores how deeply these digital dollars are woven into global commerce. But with the U.S. dollar facing unprecedented headwinds—the Dollar Index recently hit a 40-year low for a January opening—the timing of this legislation couldn’t be more critical.
### The Dollar’s Uncertain Future
The greenback’s decline isn’t just a blip. China, Japan, and other major Treasury holders have been steadily reducing their exposure to U.S. debt. In 2011, these nations held 23% of outstanding Treasuries; by late 2024, that figure had plummeted to just 6%, even as national debt ballooned to $36 trillion.
*”Sovereign demand for dollars is waning,”* Klaich noted. *”If stablecoins can offset that by driving retail and institutional demand, it’s a game-changer for the U.S. economy.”*
Citigroup’s projections support this view. The bank estimates that stablecoin reserves could swell to $1.6 trillion by 2030, potentially making issuers among the largest buyers of U.S. debt—a lifeline for a nation grappling with refinancing challenges.
### The Final Hurdles
Despite the optimism, the bill’s journey isn’t over. Negotiators had to balance competing priorities: ensuring robust anti-money laundering safeguards without stifling innovation, and addressing national security risks while fostering global competitiveness.
*”We’ve been at this for three Congresses,”* Barr said. *”But the revisions have made this a stronger, more balanced piece of legislation.”*
Klaich agreed, emphasizing that the latest draft addresses earlier sticking points. *”The compromises were reasonable. This isn’t a
