Updated GENIUS stablecoin legislation moves to the Senate, prohibits Big Tech from creating tokens.

The Senate of the United States is gearing up for a vote next week on an amended version of the GENIUS Act, a legislation centered around stablecoins that has been altered in response to issues raised by Democratic senators.

Recently, the bill faced delays as several Democratic lawmakers withdrew their support, pointing out deficiencies in anti-money laundering measures, inadequate oversight over international stablecoin providers, and insufficient enforcement capabilities.

To address these concerns, the authors of the bill have proposed significant amendments aimed at enhancing regulatory oversight and bolstering national security initiatives.

### Notable Amendments to the GENIUS Act

The revised legislation is said to fortify provisions related to financial integrity, protection of consumers, and ethical business practices.

It also incorporates language that targets the dominance of major tech companies and foreign stakeholders within the digital currency landscape.

One of the most pivotal amendments is a clause that prevents non-financial publicly traded entities from issuing stablecoins unless they adhere to stringent requirements, including well-defined protocols for risk management, data privacy, and equitable business operations.

Former journalist Eleanor Terrett mentioned that this amendment seeks to “preserve the distinction between banking and commerce.”

This will effectively limit the financial ventures of major tech firms such as Meta, Google, Amazon, and Microsoft from introducing digital currencies that may evade regulatory oversight.

The revision comes shortly after reports indicated that Meta is engaging in preliminary talks with cryptocurrency firms about facilitating cross-border stablecoin transactions on its platforms.

Additionally, the updated bill clarifies that stablecoins will not be covered by federal insurance protections, which aims to minimize the potential for consumer misunderstanding and financial scams.

These modifications are designed to establish clear legal parameters while maintaining the integral role of conventional financial entities.

### Crypto Sector Activates Prior to Vote

In anticipation of the upcoming vote, cryptocurrency advocacy organizations have intensified their efforts to promote the legislation.

Stand With Crypto, a group advocating for cryptocurrency backed by Coinbase, has initiated a campaign urging constituents to reach out to their senators urging support for the bill.

The Blockchain Association, another advocacy group, shared a similar message, asserting that advancing the bill “would bring us closer to establishing a bipartisan framework for stablecoins.”

Coinbase CEO Brian Armstrong has also joined the movement, urging lawmakers “to establish explicit guidelines for cryptocurrency in the United States.” He further emphasized that “52 million Americans have interacted with cryptocurrency and seek regulatory clarity.”