Another giant legal regulation that is closely related to the crypto currency sector and stablecoin projects in the US is about to be realized! The Senate Banking Committee approved the Genius Act presented by Senator Bill Hagerty (R-TN) and an important threshold for stablecoin arrangements was overcome.

This bill aims to provide a clear regulatory framework for the Stablecoin market and to ensure that the US remains leading in financial innovation. The law, which is adopted by 18 and 6 votes, is now waiting for the full Senate and the House of Representatives to vote. If approved, it will finally be presented to President Donald Trump’s signature.

So, how will this law affect Stablecoin investors and crypto money market? As Kriptokoin.com, we transfer the details.

What is GENIUS ACT and what does it mean for stablecoins?

Guiding and Establishing National Innovation for Us Stablecoins Act (GenIus Act) is a regulation aimed at providing legal clarity for companies exporting stablecoin. The uncertainties about how stablecoins would be regulated in the USA have long been a big question mark for the financial sector and crypto investors for a long time.

This law aims to create a framework that will promote financial innovation while providing consumer security of stablecoins. The Committee President Senator Tim Scott (R-SC) described Stablecoins as “travel checks on the block chain” and pointed out how these beings create a transformation in the financial world.

Democrats and Republicans are facing!

Although the law is progressing with Bipartisan (double -sided) support, especially the Democratic senators directed harsh criticisms for some parts.

• Senator Elizabeth Warren (D-Ma) argued that stablecoins could be used for illegal financing and that there were not enough control mechanisms.
• Warren also claimed that former President Donald Trump may be linked to some of the companies exporting stablecoin, suggesting that this regulation could harm the financial system.
• Senator Catherine Cortez Masto (D-NV) said the bill is a strong start but not sufficiently detailed.

In contrast, Senator Scott and Republicans argued that the stablecoin market should not be left in uncertainty and that financial innovation should be opened. In the committee vote, the more strict regulation changes proposed by the Democrats were rejected by the Republican majority.

Banks and Fintech companies are in the race for Stablecoin!

While the uncertainty on crypto arrangements continues, large banks and fintech companies are accelerating their own stablecoin projects.

• In the US, major financial institutions began to test Blockchain -based payment systems.
• Leading payment companies and banks plan to increase international transfers faster and more costly by increasing the use of stablecoin.

In addition, Binance recently changed the Stablecoin trade policy in the European Economic Area (EEA). In a statement made on March 3, stablecoins that do not comply with the Mica (Markets in Crypto-Assets) arrangements will be removed from the list. This indicates that more strict arrangements for Stablecoins in Europe are at the door.

What will happen now? Genius Act’s next steps

This law can be a critical turning point in the US that will shape the future of the stablecoin market. However, the process has not yet been completed.

• Full Senate Vote: The law will be voted by the full Senate and will be sent to the House of Representatives if accepted.
• Approval of the House of Representatives: If it receives support here, the final stage will be started.
• President Donald Trump’s signature: Finally, if Trump approves this law, stablecoins will be established in an official legal framework in the US.

For now, it is unclear when the vote in the Senate will be held. However, negotiations on the draft law continue and the Democrats put pressure on the change of some parts.

What does Stablecoin mean for investors?

The enactment of GENIUS ACT can eliminate great uncertainty for Stablecoin investors. However, some regulations may increase the pressure on the companies exporting stablecoin.

1. If the law is adopted:

• The legal framework of the Stablecoins will become clear and financial institutions will be able to use these assets more easily.
• Thanks to the regulation, confidence in the markets will increase and corporate investors’ interest in stablecoins will grow.
• More banks and financial institutions can develop stablecoin -based payment systems.

2. If the law is rejected:

• The uncertainty in the Stablecoin market will continue and the lack of regulation may be uneasy.
• Some stabilcoin projects in the United States can slow down due to regulation risks or move to other countries.