The Senate voted 66-22 late on Monday for the progress of the genius law, a bill aimed at regulating some encrypted currencies.
The draft law has faced some democratic opposition in recent weeks due to President Donald Trump’s projects, but eventually received support from 16 democratic support, including Senator Corrie Baker, Dean.
The scale supported by industry establishes rules targeting stablecoins, a type of cryptocurrency associated with another asset value, and is often the US dollar.
Supporters praised the invoice as a way to protect consumers and set industry standards, which can allow these encrypted metal laboratories to become a prevailing tool for digital payments and other financial tools.
However, critics have warned that the draft law fails to address concerns that Trump’s interests oppose, and that he risks exposing consumers to the risk and the broader economy with a weak group of rules.
“This paves the way for these assets to go to the prevailing,” Christian Catalini, founder of the Economy Laboratory at the Massachusetts Institute of Technology, who supports this measure, told ABC News in a statement.
Here is what to know about the verb of the genius, and what does it mean to you.
What is the verb of the genius?
The genius law relates to the issuance and exchange of Stablecoins, a form of digital currency backed by another form of currency such as the US dollar or a commodity like gold.
Stablecoins is designed to be less volatile than other cryptocurrencies, which can suffer from significant fluctuations in prices, thus making it difficult for individuals who use them to facilitate the purchase or sale process.
The draft law defines the rules of Stablecoin, including the mandate that companies retain the assets reserves behind the encrypted currency. This condition aims to protect consumers, who are risked other than that failure to disburse their holdings in the event of a large -scale discharge from the coins.
In a separate attempt to protect consumers, this procedure from exporters will require giving currency holders a priority to pay them in a bankruptcy. This procedure also imposes on some anti -money laundering rules and anti -terrorist penalties.
Senator Elizabeth Warren is making a special forum on the increasing cost of education in the Diriksen office building in the Senate, May 14, 2025, in Washington, DC.
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What do supporters and critics say about the verb of the genius?
Supporters of the genius law revive the scale as a unique effort to give the official character to a major segment of the encrypted currency industry, providing guarantees for consumers, allowing entry to traditional financial companies and developing the digital currency market.
“This opens the gates,” Catalini said. “You will see many exporters. Consumers will have all options. This will lead to more competition and innovation in payments.”
Catalini added that the new rules got rid of consumers to distinguish between good and bad actors in the Stablecoin sector, instead, opening competition between companies based on the quality of their products.
“It becomes a game who can provide better conditions and features for consumers and faster companies,” Catalini said.
However, critics of this measure says that it is up to a group of weak -friendly regulations that fail to protect consumers and the illegal police of illegal trading in Stablecoins.
Senator Elizabeth Warren, Mag, said in the Senate Hall on Monday: “While the strong Stablecoin Bill is the best possible result, this weak law is worse than the lack of a bill at all,” said Senator Elizabeth Warren, Mag, in the Senate Hall on Monday.
Critics say that the deficiencies in the bill are its inability to address concerns about the interests raised by Trump’s dealings in Stablecoins.
In March, World Liberty Financial has released Trump World Liberty Financial Stablecoin USD1. An investment company based in Abu Dahbi used earlier this month Stablecoin investment at Crypto Exchange Binance, putting Trump in a position that allows him to profit from the deal. Trump has denied any violations.
The draft law is characterized by a condition that “any member of the Congress or a senior executive official is prohibited from issuing the Stablecoin product to pay during their time in public service.”
However, Warren said, this procedure is not sufficiently protecting from the fears raised by the Trump project.
Warren added: “The draft law provides more opportunities to reward buyers from Trump currencies with services such as customs tariff exemptions, pardon and government appointments.”
