A “first-of-its-kind” crypto bill is making progress through the Senate, despite concerns over corruption and the potential for abuse of power. The GENIUS bill aims to establish rules for stablecoins, digital assets pegged to traditional currencies like the dollar. Proponents argue that this would increase adoption and revenue for the industry.
However, critics say the bill lacks consumer safeguards and does not limit corporations’ ability to issue their own stablecoins. This could lead to a lack of oversight, allowing companies like Meta or Amazon to become de facto banks.
The Trump administration has been accused of promoting crypto without adequate regulation, which has sparked concerns over corruption. The latest bill does little to address these concerns, with some lawmakers defending its passage as necessary for the future of blockchain technology.
Experts warn that this could lead to a repeat of the 2008 financial crisis, where “too big to fail” institutions caused widespread collapse. A recent bailout of Silicon Valley Bank’s stablecoin holdings highlights the risks involved.
The bill’s proponents argue that 100% cash reserves backing stablecoins would prevent runs on these assets. However, experts point out that money-market mutual funds have experienced similar panic-induced bailouts in the past, casting doubt on this assumption.
Source: https://edition.cnn.com/2025/05/20/business/crypto-genius-stablecoin-nightcap