tl;dr
On May 21, US lawmakers advanced two blockchain-related legislative efforts. The Senate approved a motion to debate the GENIUS Act, which sets standards for stablecoin issuance, requiring issuers to maintain fully backed liquid reserves, prohibits yield-bearing products, and mandates compliance with...
On May 21, US lawmakers made significant strides in blockchain legislation by advancing two key bills. The Senate approved a motion to debate the Government and Enterprise Need for Innovation in the United States (GENIUS) Act, aimed at setting rigorous standards for stablecoin issuance. This act mandates that issuers maintain fully backed, liquid reserves, often in the form of US Treasuries or insured deposits, to back stablecoins 1:1 against liabilities. It prohibits yield-bearing products and requires issuers to comply with stringent know-your-customer (KYC), suspicious activity monitoring, and anti-money laundering (AML) programs. Furthermore, issuers will be supervised by federal or federally certified state regulators depending on their issuance scale.
The Senate’s approval, with a vote of 69–31, initiates a formal debate and amendment process, reflecting bipartisan support following an earlier 66–32 cloture vote. This open-ended debate allows senators to propose and discuss amendments before a final vote, underscoring the careful scrutiny the bill will undergo.
Meanwhile, the House of Representatives reintroduced the Blockchain Regulatory Certainty Act, led by Congressmen Tom Emmer (R-MN) and Ritchie Torres (D-NY). This legislation aims to provide clear federal legal protections and regulatory certainty for blockchain developers and non-custodial service providers. It seeks to establish a federal safe harbor preventing these actors from being classified as regulated intermediaries, such as money transmitters or financial institutions, solely for creating or maintaining blockchain software.
The act carefully differentiates custodial from non-custodial actors, defining “control” as the legal ability to transact unilaterally with digital assets. It stipulates that developers or service providers will not face state or federal licensing requirements unless they exercise such control over users' digital assets. The bill also respects intellectual property laws and allows states to enforce compatible regulatory frameworks. However, the Blockchain Regulatory Certainty Act has yet to be scheduled for markup or a floor vote, signaling ongoing discussions around regulatory clarity in the digital asset space.
Together, these legislative efforts indicate growing momentum in Congress to support innovation while imposing safeguards in the blockchain and cryptocurrency industries. They highlight an emerging consensus to balance investor protection with fostering a vibrant, compliant digital asset ecosystem.