Coinbase CEO Pushes GENIUS Act as Stablecoin Bill Faces Senate Test

TLDRCoinbase CEO urges Senate to pass the GENIUS Act before August.The GENIUS Act would require stablecoins to be 1:1 backed and federally licensed.Some Democrats oppose the bill over security and AML concerns.Crypto leaders support the bill for clear national stablecoin rules.WLFI to launch USD1, a stablecoin backed by Treasuries and cash.Coinbase CEO Brian Armstrong has renewed calls for legislative action as the GENIUS Act moves closer to Senate debate. The bipartisan bill aims to establish a national framework for stablecoin regulation, offering clear standards for issuers and market participants. Armstrong emphasized the urgency in a recent post, urging lawmakers to act before the August recess.Congress has a real opportunity this week to advance stablecoin and market structure legislation. We strongly support the Senate starting debate on the GENIUS Act — and we need 60 votes to get there. We also welcome House efforts to build on FIT21’s momentum. Both chambers need...— Brian Armstrong (@brian_armstrong) May 6, 2025The GENIUS Act would require stablecoin issuers to hold a national license and back all tokens 1:1 with U.S. dollars or equivalents such as insured bank deposits or short-term Treasury securities. A three-year transition period would be granted for service providers to comply fully with the new framework. The bill is critical to regulating the digital dollar while enhancing consumer protection and business compliance.Democratic Opposition Raises Regulatory ConcernsDespite bipartisan origins, the GENIUS Act is facing resistance from some Senate Democrats. Concerns about potential national security risks and the need for stronger anti-money laundering provisions have been raised. These concerns could hinder the bill’s momentum in the Senate, where 60 votes are required to begin formal debate.The hesitation reflects broader tensions around crypto legislation, with lawmakers balancing innovation with regulatory safeguards. While the crypto industry broadly supports the act, divisions in Congress could delay progress unless compromises are reached. The outcome will shape the direction of future legislation aimed at digital assets.Industry Support for Clear Stablecoin FrameworkThe GENIUS Act has received backing from industry leaders and analysts who argue that stablecoin regulation is long overdue. Crypto analyst Gage Salicki described the legislation as one of the most significant regulatory efforts in recent years, highlighting its potential to bring structure to a largely unregulated space.Armstrong’s comments align with broader sentiment across the digital asset sector, which has long requested a federal regulatory pathway. The lack of uniform guidance has caused operational uncertainty and regulatory fragmentation across states. The GENIUS Act seeks to resolve these issues by creating a unified, enforceable federal standard for stablecoin issuers.WLFI to Launch USD1 Stablecoin Backed by Traditional AssetsMeanwhile, World Liberty Financial Inc. (WLFI) announced the upcoming launch of USD1, a new stablecoin backed entirely by short-term U.S. Treasuries, U.S. dollar deposits, and cash equivalents. The USD1 token will be deployed on Ethereum and Binance Smart Chain, with plans to expand to additional blockchain networks.As Congress considers the GENIUS Act, the crypto industry continues to advocate for federal clarity on stablecoins. The bill’s future in the Senate remains uncertain, but its passage could mark a turning point in U.S. digital asset policy. The post Coinbase CEO Pushes GENIUS Act as Stablecoin Bill Faces Senate Test appeared first on CoinCentral.