The crypto world is waiting for the Senate decision: What does the GENIUS Act bring?

The cryptocurrency asset proposal that created excitement in the United States was recently rejected by a vote of 49 to 48. This proposal was designed for stable coins indexed to the US dollar. Over time, this draft text was amended and brought back to the Senate. As a result, it received the necessary votes to be brought to the Senate agenda. If the Senate also approves it, the next step will be President Trump's signature.

So how did the Democrats change their position?

According to reports expressed in the US press, provisions aimed at preventing the laundering of criminal proceeds have been strengthened concerning foreign exporters, national security measures, consumer protection, and the security and stability of the financial system. Not only that, but it is also said that the Democrats have received assurances from the Republicans on several important issues. These issues include restrictions on major technology companies issuing stable coins, the expansion of bans on interest-bearing stable coins, and comprehensive provisions that guarantee the enforcement of existing federal consumer protection laws such as the Consumer Financial Protection Bureau and the Federal Trade Commission.

Lobbies Before the Voting

It was clear that the Democrats needed support to surpass the necessary voting threshold for the bill. However, despite this update, it was also known that some Democrats were still reactive to the proposal. The reason for this reaction was the absence of a provision targeting the Trump family's cryptocurrency investments in the relevant bill, and this lack created significant concern for some individuals, particularly on the left.

American Democratic Senator Warren clearly stated that the bill in its current form would fuel Trump's crypto corruption. Following this striking statement, it was noted that the bill does not protect consumers, conceals serious flaws that jeopardize national security, and contains symbolic provisions aimed at hiding these flaws.

Are Trump and his family speculators?

There are various claims made at different times that Trump and his family have earned high income from cryptocurrencies and have acted inconsistently. So, what are the events underlying these claims?

• Trump's former presidential term, calling Bitcoin and the major drop a "fraud," making promises regarding crypto in the race for the new presidency, and the crypto activities he conducted in the new presidency.
• Generating millions in revenue with the NFT collection called Trump Digital Trading Cards
• While some crypto assets are sold, purchase messages are given on social media.

In fact, these kinds of activities have been known and carried out since the invention of money. It is not for no reason that not everyone can give financial advice in financial markets and that financial markets are so tightly regulated. For example, in the ancient city of Aizonoi in Kütahya, the world's first stock exchange exists, along with the emperor's orders. Even in these orders, there are rules for the functioning of the stock exchange. One of these is the prevention of manipulation.

The manipulation by someone -whether it's Trump or Caesar- is neither the fault of Bitcoin nor the grain in Aizonoi. Everyone manipulates, what matters is the value in question.

Post-Voting Status

As a result of the voting carried out on the GENIUS Act, it has gained the right to be discussed in the Senate and ultimately voted on. If the Senate votes positively at this stage and the law is signed by Trump, this law will provide a regulatory framework for stablecoins.

What does the GENIUS Act bring?

• Only authorized companies will be able to issue stablecoins.
• Issuers will be supervised by public authorities at the federal and state levels.
• Issuers should support stable coins on a one-to-one basis. In other words, if the issuer issues ten dollars in stable coins, it will need to have ten dollars in reserves.
• Issuer companies will regularly announce the status of their reserves to the public.
• Exporters will be separated at the federal and state level.
• The procedures and principles for the control, inspection, and sanctions on exporters will be determined.

The rules mentioned above are some of the fundamental discussed rules. In addition to these, the GENIUS Act also covers various topics such as consumer protection, marketing methods, ethical principles that company executives must adhere to, and the use of stable coins in payments.

Published: May 26, 2025 20:18