Ten Senators Oppose GENIUS Act, Cite Regulatory Concerns

Opposition and Concerns

Senator Ruben Gallego and nine other Senators have publicly opposed the updated GENIUS Act, expressing concerns over inadequate anti-money laundering safeguards, days before its Senate vote in the United States.

Senator Ruben Gallego, along with nine colleagues, has voiced opposition against the updated GENIUS Act, citing weak anti-money laundering provisions and national security risks. The Act’s scheduled Senate vote adds urgency to address these issues.

The opposition includes a significant shift by Senators Ruben Gallego, Andy Kim, Lisa Blunt Rochester, and Mark Warner, all of whom previously supported the bill. Meanwhile, Senator Bill Hagerty labels the situation as a potential partisan divide.

We have a choice here. Move forward and make any remaining changes needed in a bipartisan way, or show that digital asset and crypto legislation remains a solely Republican issue. — Senator Bill Hagerty

Implications for the Crypto Market

The crypto market faces uncertainty as the failure of the GENIUS Act could derail stablecoin regulations, affecting consumer protection and institutional involvement. Without clear rules, industry growth may stall.

Senator Elizabeth Warren’s criticism, focusing on USD1’s connections with the UAE, adds a geopolitical angle to the debate. This affects market confidence and legislative momentum, hindering broader crypto investments.

Alex Thorn from Galaxy Digital highlights risks of delaying crypto regulations until 2025, with potential implications for blockchain and financial integration efforts. Previous bipartisan support may waver amid growing scrutiny.

Future of Crypto Legislation

Stakeholders should monitor developments closely, as regulatory outcomes could reshape stablecoin strategies. Market players may need to adapt to evolving legislative landscapes and compliance demands if the GENIUS Act stalls.