Final Senate Vote On GENIUS Act Looms As SEC Scraps Biden-Era Crypto Rules

The US Senate has scheduled its final vote for the GENIUS Act for June 17 as the Securities and Exchange Commission (SEC) scraps a series of crypto rules that were proposed under the Biden administration.

The official website for Senate Democrats revealed the scheduled date in a notice yesterday. The exact time for the vote will be decided later by the Majority Leader in consultation with the Democratic Leader, the notice added. 

GENIUS Act Could Give Much-Needed Stablecoin Clarity In The US

The GENIUS bill aims to establish a legal and regulatory framework for stablecoins. 

That framework includes requiring stablecoin issuers to fully back their tokens with US dollars or similarly liquid assets, mandating annual audits for issuers with more than $50 billion in market cap, and adding compliance guidelines for issuers outside of the US.

The scheduled final vote comes after the Senate voted in favor of the bill on June 11, setting it up for a final vote. Should the bill pass it will head to the House of Representatives. 

Both the Senate and House, which has proposed its own stablecoin legislation, will need to reach consensus on their respective bills. Currently, the proposed bills differ on issues such as state and federal regulation of stablecoin issuers, as well as the oversight of foreign issuers such as Tether. 

SEC Scraps Biden-Era Crypto Rules

As the GENIUS Act progresses, the SEC has also announced that it will rescind rules proposed by former anti-crypto Chair Gary Gensler. 

Yesterday, the agency said it was “withdrawing certain notices of proposed rulemaking” that were issued under Gensler between March 2022 and November 2023.

Among the 14 rules that were withdrawn by the SEC was Rule 3b-16. It would have expanded the definition of “exchange” to include DeFi protocols and tighten crypto custody standards for investment advisers.