TLDR
- Coinbase CEO urges Congress to pass crypto laws before August.
- The GENIUS Act sets rules for stablecoins backed 1-to-1 with strong consumer protections.
- Crypto leaders support the bill to boost innovation and dollar dominance.
- Some lawmakers oppose it over security and Trump-related concerns.
Brian Armstrong, the CEO of Coinbase, has called on Congress to act swiftly on stablecoin and market structure legislation, stressing the importance of passing comprehensive regulations before August.
Armstrong Urges Fast Passage of the Act
In a tweet on Wednesday, Armstrong emphasized the need for bipartisan support to advance the GENIUS Act, a groundbreaking piece of legislation that would establish a regulatory framework for stablecoins. Armstrong’s remarks come as the U.S. Senate prepares to vote on the bill, despite growing opposition.
“The GENIUS Act offers a real opportunity to move forward on stablecoin regulation,” Armstrong tweeted. “We strongly support the Senate starting debate on the GENIUS Act — and we need 60 votes to get there. Both chambers need to act now if we hope to pass comprehensive legislation before August.”
The GENIUS Act, which stands for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, was introduced to address the rapidly growing stablecoin market. It seeks to establish a regulatory framework for digital assets tied to the U.S. dollar. The act is designed to provide clarity on the issuance and use of stablecoins, which are increasingly becoming a popular tool in the crypto space due to their stability relative to more volatile cryptocurrencies like Bitcoin.
Industry Leaders, Lawmakers Show support
Senator Bill Hagerty along with co-sponsors Senator Tim Scott and Senator Cynthia Lummis, spearheaded the bill. It aims to create rules that would ensure stablecoins are backed 1-to-1 by reserves, which would provide greater consumer protection. Additionally, it would offer stronger rights for consumers in the event of bankruptcy and impose strict marketing standards.
The GENIUS Act protects consumers by:
✅ Requiring all stablecoins to be backed 1-to-1
✅ Giving consumers strong rights in bankruptcy
✅ Establishing strict marketing standards— Senator Cynthia Lummis (@SenLummis) May 7, 2025
Supporters of the GENIUS Act, including Chris Dixon, managing partner at A16 Crypto, emphasized the importance of moving quickly to pass the bill, arguing that it will increase transparency and protect consumers, marking a significant improvement over the current regulatory environment.
“It’s time to pass bipartisan stablecoin legislation. The GENIUS Act will protect consumers and increase transparency — a significant improvement on the status quo.”
Elsewhere, industry leaders such as Kristin Smith, CEO of the Blockchain Association, and Cody Carbone, CEO of The Digital Chamber, also voiced their support. They argue that the legislation will foster greater adoption of stablecoins and solidify U.S. dollar dominance in the digital economy. They further emphasized that this legislation would benefit both consumers and businesses, providing the necessary clarity for stablecoin adoption and facilitating innovation in digital finance.
GENIUS Act still Faces Resistance
However, not everyone is in favor of the bill. Some opponents, including Senator Elizabeth Warren, have raised concerns over the potential for misuse, particularly regarding financial transactions linked to high-profile figures like former President Donald Trump. Warren argued that the GENIUS Act could make it easier for Trump and others to profit from stablecoins, which she believes could lead to conflicts of interest and undermine the integrity of the system.
Trump is already using his stablecoin to get a cut of a $2 BILLION deal with a shady UAE fund.
The Senate will vote on the GENIUS Act, a crypto bill which would make the President's grift even easier.
If we don't fix that problem, no Senator should vote for it. pic.twitter.com/hD9IaHMNMB
— Elizabeth Warren (@SenWarren) May 6, 2025
Further opposition came from a group of senators, including Senator Ruben Gallego, who issued a joint statement late last week criticizing the bill’s current form. The group expressed concerns about insufficient provisions related to anti-money laundering, national security, and the safety of the financial system. While some senators had previously supported the bill, they now argue that these issues need to be addressed before the bill can proceed.
That said, as the Senate prepares for a vote on the GENIUS Act, the future of stablecoin legislation remains uncertain. Supporters argue that passing the bill is essential for maintaining the U.S.’s leadership in blockchain technology, while critics warn that the bill could have unintended consequences if not properly refined.
