WASHINGTON–As expected, the Senate has passed the GENIUS Act, which for the first time establishes federal guardrails for U.S. dollar-pegged stablecoins and which creates regulations that would allow companies to issue digital dollars.

The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) has the backing of credit unions and, of course, the crypto industry, which reportedly put $250 million into the most recent congressional elections to support pro-crypto candidates.

Credit unions had been concerned that portions of the Credit Card Competition Act, or portions thereof, would be included in the bill, but ultimately it was not. The CCCA would affect interchange for financial institutions.

The bill passed with a 68-30 vote, but must still pass in the House where there is companion legislation and passage is not a certainty.

Support for Saying ‘No’

“America’s Credit Unions thanks the U.S. Senate for passing a clean GENIUS Act,” said America’s Credit Unions President and CEO Jim Nussle in a statement. “Keeping poison pill amendments out of the bill protects consumers, small businesses, and financial institutions. Credit unions are here to strengthen Main Street, and we appreciate that senators said ‘no’ to Senators (Roger) Marshall’s and (Josh) Hawley’s unrelated and unproductive amendments that did not go through proper consideration in the standard legislative process.”

Hawley (R-MO) has proposed legislation that would cap credit card interest rates at 10%.

House Passage Urged

“We urge the House to pass the companion STABLE Act without any amendments,” Nussle continued. “As a clean bill, this will allow consumers to enter the digital era of currency and credit unions interested in providing these services will be able to meet their members’ needs. We appreciate Congress for recognizing the need for parity among financial institutions in this space.”