Meta, Amazon and Google could face Stablecoin Ban

After the genius law failed in the Senate last week, lawmakers added several bipartisan amendments. These represent important concessions to the anti-cryptic faction, with some important limitations.

In particular, they prohibit large tech companies from banning the issuance of Stablecoins. These amendments will increase the transparency of stubcoin and allow enforcement action for non-integrated companies.

Can the Genius Act pass with new fixes?

Stablecoin regulations are a matter of priority for US crypto regulations, and genius is now the industry’s biggest hope to pass them on.

Its success seemed like last week, but failed in the Senate after hard democratic opposition and Republican exile. But rumors say there is a new bipartisan amendment in the genius act that may see it.

Generally, corrections for genius behaviour fall along the same axis. It’s about dealing with concerns that failed last week. These include limiting the likelihood of fraud in several ways, such as making it clear that these products do not have consumer protection under FDIC or federal affiliation.

However, it is particularly prominent and has a great deal of significance.

“We prohibit non-financially public companies from issuing stable companies unless they can meet strict standards of financial risk, consumer data privacy and fair business practices. This will prevent companies like Meta, Amazon, Google, Microsoft from issuing Stablecoin and maintain a separation between banks and commercial.

The report argues that the amendments to these genius behaviors are from two Senate sources. However, another version is also in circulation, suggesting that Big Technology could be banned from holding stubcoins in any way.

The language of the bill has not been fixed, so both versions may be accurate.

Specific modifications and their goals

With Stablecoins attracting a lot of news, skeptical lawmakers have good reasons to make this the biggest regulatory priority. Aside from the ridiculous and vast use cases in common criminal activity, the revisions to these genius behavior seem to be tailored to certain recent incidents.

For example, consider the requirement that Stablecoins cannot directly withstand US-themed branding. Trump’s USD1 has caused a massive controversy and has no direct ties with the government.

The Genius Act amendment was intended to ban Big Tech from launching Stablecoins, and Meta proposed using them within a week.

Above all, the modification of the genius behavior is expressly intended to “maintain a separation between banks and commerce.” Tether is investing in incredibly vast resources in the new US Stablecoin opportunity, spending $65 billion on the US Treasury in just three months.

Big Tech costs plenty of cash, so you need tight guardrails. Other genius law amendments detail some such guardrails. For example, relax the requirements for enforcement action against Stablecoin issuers.

It also places these actions under the scope of the Ministry of Finance as other regulators such as the SEC and CFTC are being destroyed.

Furthermore, he specifically nominates Elon Musk as a federal employee with a strong conflict of interest, particularly on the issue, but is named others.

Again, these amendments are not finalized, so it is not clear whether the genius act will be passed. However, in any case, these proposals represent a massive victory over Congress’s crypto-skeptic faction.