The U.S. Senate approved the progress of the stablecoin regulation 'GENIUS Bill'.

## A big transition

On the morning of the 20th Japan time, the U.S. Senate approved the motion to end debate on the cryptocurrency stablecoin regulation bill "GENIUS Bill" with a significant majority of 66 votes in favor and 32 against. Despite opposition from Senate Majority Leader Schumer and others in the Democratic Party, several Democratic lawmakers, including Mr. Fetterman and Mr. Schiff, supported the motion, leading to a reversal from the bill's defeat on May 8 and allowing the bill's discussion to progress. In response to this development, the prices of some decentralized stablecoin issuance protocols, such as FRAX, surged.

The amended bill has strengthened consumer protection and ethical provisions, including prohibiting false claims about FDIC insurance and government guarantees, restrictions on stablecoin issuance by major IT companies, and banning the use of "United States" related terms in names. Senators Lummis (R) and Gillibrand (D) have shown a positive outlook for the passage of the bill by May 26.

Concerns about conflicts of interest regarding President Trump and his family's cryptocurrency business have been raised by the Democratic Party, but Representative Gillibrand explained that "the main purpose of the bill is to regulate stablecoins, and it is not necessary to address all of the President's ethical issues." Experts point out that the bill is essentially a "Dollar Dominance Bill," highlighting the importance of maintaining the United States' monetary supremacy in the context of an international situation that promotes de-dollarization.

There are concerns in the cryptocurrency industry that if the GENIUS bill is not passed under the current administration, a strong cryptocurrency regulatory framework may not be realized until 2029. Additionally, industry experts have expressed expectations that the establishment of stablecoin regulations could serve as a "catalyst" to create new use cases, particularly in emerging countries, and encourage the entry of institutional investors.