ChainTech Africa

Washington, D.C. — A revised version of the GENIUS Act, a bill aimed at regulating stablecoins, is headed to the U.S. Senate floor for a vote next week following key amendments designed to address national security and financial oversight concerns.

The legislation, originally stalled after several Democratic lawmakers withdrew their support, has now been updated to include stronger provisions for anti-money laundering (AML), oversight of foreign issuers, and enforcement mechanisms. Lawmakers behind the bill introduced these changes in an effort to secure bipartisan backing and advance the United States’ digital asset regulatory framework.

Key Amendments to the GENIUS Act

Among the most notable revisions is a new clause that prohibits non-financial, publicly traded companies from issuing stablecoins unless they meet stringent requirements. These include comprehensive risk management protocols, strict data privacy protections, and adherence to ethical business practices.

This provision is widely seen as a move to limit the involvement of Big Tech firms—such as Meta, Google, Amazon, and Microsoft—in the issuance of digital currencies. The amendment reflects growing concern among lawmakers about the potential for tech giants to disrupt financial markets without adequate regulatory oversight.

Former FOX Business journalist Eleanor Terrett noted that the changes are designed to “maintain the separation between banking and commerce,” effectively drawing a line between technology platforms and traditional financial services.

The timing of the amendment is significant, coming shortly after reports surfaced that Meta is in preliminary talks with crypto firms to explore cross-border stablecoin payments on its platforms.

The revised GENIUS Act also explicitly clarifies that stablecoins do not carry federal insurance protections, a measure intended to prevent consumer confusion and mitigate fraud risks.

Strengthening Oversight and Consumer Protection

The bill’s sponsors say the updated version strengthens the framework for consumer protection, financial integrity, and ethical conduct in the stablecoin market. It also includes new language to limit the influence of foreign actors and large non-financial corporations in the U.S. digital currency ecosystem.

By reinforcing these boundaries, the bill aims to ensure that stablecoin development remains within the purview of regulated financial institutions while safeguarding consumers and national financial stability.

Crypto Advocacy Groups Rally Support

As the Senate prepares for the upcoming vote, industry stakeholders have intensified their lobbying efforts. Stand With Crypto, a Coinbase-backed advocacy initiative, launched a grassroots campaign urging constituents to contact their senators and express support for the bill.

The Blockchain Association also voiced strong backing for the legislation, calling it a crucial step toward establishing a bipartisan regulatory framework for stablecoins in the U.S.

Coinbase CEO Brian Armstrong joined the campaign, stating: “52 million Americans have used crypto and want to see regulatory clarity.” He emphasized the importance of passing the bill to set the groundwork for responsible innovation in the digital asset space.