Stalled Stablecoin Bill Sparks Concerns Over U.S. Crypto Regulation Timeline
As lawmakers revisit the GENIUS Act—a proposed framework for stablecoin oversight—questions are mounting over whether Washington will act in time to shape meaningful crypto regulation before the next political cycle takes over.
Though pitched as a low-risk, bipartisan stepping stone toward digital asset legislation, the bill’s future in the Senate remains uncertain. Attorney John Deaton, a vocal advocate for crypto holders, warns that failure to pass even this moderate proposal could stall regulatory progress until after the midterms—or potentially longer. With a razor-thin House majority and looming electoral shifts, he believes the clock is running out for any substantive movement.
Deaton argues that the bill’s design, while crafted to appease the banking sector, offers little benefit to retail participants. One controversial omission: stablecoin holders would be barred from earning interest, a concession seen by some as an attempt to keep traditional financial institutions comfortable with the new rules.
The updated version of the GENIUS Act would also give the U.S. authority over foreign stablecoin issuers, apply anti-money laundering obligations to wallet providers and validators, and limit big tech firms from entering the space unless they meet strict financial and privacy standards.
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While many lawmakers want the bill back on the Senate floor quickly, not all are aligned. Senator Elizabeth Warren and others worry that it could inadvertently open the door for tech giants to dominate payment systems, sidelining smaller startups in the process.
With over 50 million Americans now holding digital assets, the stakes are high. If lawmakers can’t pass a basic regulatory bill like this one, the message to the crypto industry may be grim: don’t expect legal clarity from Washington anytime soon.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
