The U.S. Senate has declined to advance the GENIUS Act, a proposed law to create a federal regulatory framework for stablecoins. The decision has sparked fears over America’s slipping influence in the fast-growing digital asset space.
Treasury Secretary Scott Bessent said the bill’s failure could lead to a fractured regulatory environment. He warned that without unified national guidelines, stablecoin innovation may shift offshore, weakening the role of the U.S. dollar in digital finance.
Also Read: PI Price Skyrockets 10% as Exchange Listing Rumors Shake Crypto Market
Industry Voices Alarm Over Missed Opportunity
Ripple CEO Brad Garlinghouse highlighted the global surge in stablecoin adoption following the Senate’s decision. He stressed the need for clear, workable regulations to keep U.S. companies competitive.
Garlinghouse referenced recent developments in crypto, fintech, and traditional finance, indicating that the market is maturing rapidly. Lacking federal guidance, U.S.-based projects may find it challenging to stay ahead of those from overseas.
Regulatory Uncertainty Could Push Innovation Abroad
As other countries roll out clear laws for digital assets, American firms remain bound by inconsistent state rules. This patchwork approach increases costs and slows development, making the U.S. a less attractive base for innovators.
Experts caution that further inactivity would leave the U.S. on the sidelines of essential decisions influencing the future direction of global finance. The GENIUS Act was necessary to avoid that outcome because it offered a clear legal channel for stablecoin issuers.
As the Senate holds the GENIUS Act in check, concern is rising that the U.S. could be left behind in the leadership of digital currencies. Industry figures now demand immediate legislative moves to hold down America’s place in the evolving world economy.
Also Read: Major XRP Metric Points to Repeated Historical Rally – Here’s What’s Happening
