GENIUS Act Revived: New Bipartisan Amendments Target Big Tech's Stablecoin Ambitions

16. May 2025 Posted by Bailey S. on News

After stalling in the Senate last week, the GENIUS Act may get a second chance—this time with major changes designed to win over skeptical lawmakers. A new set of bipartisan amendments is reshaping the bill’s outlook, signaling a serious shift in how Washington wants to regulate stablecoins and the role of tech giants in the financial system.

Lawmakers Tighten the Screws on Stablecoins

The updated version of the GENIUS Act includes sweeping new restrictions aimed squarely at Big Tech. Lawmakers are pushing to block large publicly traded non-financial firms—think Meta, Google, Amazon, and Microsoft—from issuing, and potentially even holding, stablecoins. These moves are designed to preserve the traditional divide between banking and commerce, a concern increasingly echoed in Congressional hearings.

One amendment reportedly prohibits companies outside the financial sector from issuing any stablecoin unless they satisfy strict benchmarks for consumer privacy, financial risk controls, and fair business practices. This echoes growing fears that tech giants could leverage their data monopolies to disrupt financial markets.

Another draft goes further, suggesting these firms might not even be allowed to hold stablecoins on their balance sheets.

GENIUS 2.0: Tighter Rules, Bigger Impact

Although the GENIUS Act initially had momentum, it collapsed in the Senate amid bipartisan resistance—Democrats wary of weak consumer protections and Republicans alarmed by regulatory overreach. The latest amendments attempt to bridge that gap.

Among the revisions are:

  • Enhanced enforcement tools for the Treasury Department to pursue noncompliant issuers, especially now that agencies like the SEC and CFTC face diminished authority.

  • Explicit consumer disclaimers, including language clarifying that stablecoins aren’t insured or backed by the federal government.

  • Branding restrictions, such as banning any stablecoin that uses patriotic or government-like names—like the controversial “Trump USD1,” which sparked backlash for implying official U.S. endorsement.

There’s even a provision addressing high-profile figures: one amendment calls out Elon Musk by name, citing potential conflicts of interest due to his overlapping roles in tech and finance.

Will It Pass?

With these new guardrails, the GENIUS Act might have a better shot at becoming law. Still, the final language remains in flux. Multiple versions of the bill are reportedly circulating on Capitol Hill, and it's unclear which one will reach the floor—if any.

Regardless of its fate, the push to redraw the stablecoin landscape marks a turning point in U.S. crypto policy. The amended GENIUS Act reflects growing unease over Big Tech’s growing influence in digital finance—and a determination by Congress to draw a line in the sand.