As lawmakers revisit the GENIUS Act—a proposed framework for stablecoin oversight—questions are mounting over whether Washington will act in time to shape meaningful crypto regulation before the next political cycle takes over.
Though pitched as a low-risk, bipartisan stepping stone toward digital asset legislation, the bill’s future in the Senate remains uncertain. Attorney John Deaton, a vocal advocate for crypto holders, warns that failure to pass even this moderate proposal could stall regulatory progress until after the midterms—or potentially longer. With a razor-thin House majority and looming electoral shifts, he believes the clock is running out for any substantive movement.
Deaton argues that the bill’s design, while crafted to appease the banking sector, offers little benefit to retail participants. One controversial omission: stablecoin holders would be barred from earning interest, a concession seen by some as an attempt to keep traditional financial institutions comfortable with the new rules.
The updated version of the GENIUS Act would also give the U.S. authority over foreign stablecoin issuers, apply anti-money laundering obligations to wallet providers and validators, and limit big tech firms from entering the space unless they meet strict financial and privacy standards.
While many lawmakers want the bill back on the Senate floor quickly, not all are aligned. Senator Elizabeth Warren and others worry that it could inadvertently open the door for tech giants to dominate payment systems, sidelining smaller startups in the process.
With over 50 million Americans now holding digital assets, the stakes are high. If lawmakers can’t pass a basic regulatory bill like this one, the message to the crypto industry may be grim: don’t expect legal clarity from Washington anytime soon.
