The U.S. Senate has moved forward with the GENIUS Act — a bill designed to regulate stablecoins — following a key vote on May 19 that passed 66-32.
The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS) had previously been stalled due to opposition from Democratic lawmakers, many of whom raised concerns about former President Donald Trump’s deep involvement in the crypto space.
The GENIUS Act is a bipartisan bill introduced in the U.S. Senate aimed at creating a comprehensive regulatory framework for stablecoins. These are cryptocurrencies designed to maintain a fixed value, typically pegged to traditional currencies like the U.S. dollar. The bill mandates that all stablecoins must be fully backed by reserves, undergo regular security audits, and be issued only by licensed entities. It also places restrictions on algorithmic stablecoins, which use code-based mechanisms to maintain price stability without traditional collateral.
The GENIUS Act is seen as a major step toward legitimizing and securing the $250 billion stablecoin market, currently dominated by players like Tether (USDT) and Circle (USDC).
The shift came after several Democrats, including Senators Mark Warner, Adam Schiff, and Ruben Gallego, changed their stance and voted in favor of invoking cloture. This procedural move sets the stage for the bill to be debated on the Senate floor.
Senator Cynthia Lummis, a Republican and vocal supporter of the bill, said she believes May 26 — Memorial Day — is a “fair target” for final passage.
However, Senator Elizabeth Warren fiercely criticized the bill, claiming it overlooks Trump’s “blatant crypto corruption.” She pointed to Trump’s numerous crypto ventures, including a memecoin, a mining company, and a fast-growing stablecoin, USD1. “Trump and his family have already pocketed hundreds of millions... and they stand to make hundreds of millions more if this bill passes,” she warned.
As per Kraken's latest price feeds, the crypto market is showing strong momentum across the board. Bitcoin is trading at $105,125, up 2.3% in the past 24 hours, while Ethereum has gained 4.3%, trading at $2,509.59. Major altcoins like XRP, Solana, and BNB are also in the green, reflecting a broad market upswing.
Should you invest in Bitcoin ETFs?
Of course, the existence of a cheaper and easier way to trade Bitcoin doesn’t make the digital coin a buy, only cheaper and easier to do so. So crypto ETFs are a good way for traders to play Bitcoin or Ethereum if that’s already their intent, especially if it helps them avoid dubious crypto exchanges.
Former SEC chief Gary Gensler nonetheless warned investors about cryptocurrency despite his agency’s approval of Bitcoin funds. “Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” he said in 2024.
In its short lifetime, Bitcoin has been notoriously volatile, rocketing and plunging precipitously. That volatility has been great for adept traders since they make money on the volatility, and it hasn’t been too bad either for traders who have the stomach to hold on through the highs and lows. But many people tend to buy high and sell low, as the volatility melts their resolve.
Finally, it’s vital to know that Bitcoin is not backed by anything except the sentiment of traders. Unlike a stock, which is backed by the assets and cash flow of an underlying business, Bitcoin and most other cryptocurrencies rely solely on traders’ expectations to prop up their prices. It’s what investing experts call the “greater fool theory of investing,” since traders make money only by selling to someone else who is more optimistic about the cryptocurrency’s price potential.
For this reason, legendary investor Warren Buffett has long avoided cryptocurrency, even going so far as to say that Bitcoin is “probably rat poison squared.”
Does crypto make sense in your portfolio?
A financial advisor can work with you to create a balanced portfolio that meets your short- and long-term goals.
Where can you buy the best Bitcoin ETFs?
Bitcoin ETFs are generally available at any broker that allows customers to purchase stocks on a major U.S. exchange. The best brokers for stock trading allow you to buy any available ETF with no commission, so you can get in and out of a position at a low cost.
Bottom line
The emergence of spot Bitcoin ETFs makes it easier and cheaper for traders to take a stake in the digital currency using just their traditional broker. These funds may well open up Bitcoin to wider acceptance as a store of value and push up the price of the cryptocurrency even more.
This article has been published in bankrate.com via Yahoo News.
The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS) had previously been stalled due to opposition from Democratic lawmakers, many of whom raised concerns about former President Donald Trump’s deep involvement in the crypto space.
The GENIUS Act is a bipartisan bill introduced in the U.S. Senate aimed at creating a comprehensive regulatory framework for stablecoins. These are cryptocurrencies designed to maintain a fixed value, typically pegged to traditional currencies like the U.S. dollar. The bill mandates that all stablecoins must be fully backed by reserves, undergo regular security audits, and be issued only by licensed entities. It also places restrictions on algorithmic stablecoins, which use code-based mechanisms to maintain price stability without traditional collateral.
The GENIUS Act is seen as a major step toward legitimizing and securing the $250 billion stablecoin market, currently dominated by players like Tether (USDT) and Circle (USDC).
The shift came after several Democrats, including Senators Mark Warner, Adam Schiff, and Ruben Gallego, changed their stance and voted in favor of invoking cloture. This procedural move sets the stage for the bill to be debated on the Senate floor.
Senator Cynthia Lummis, a Republican and vocal supporter of the bill, said she believes May 26 — Memorial Day — is a “fair target” for final passage.
However, Senator Elizabeth Warren fiercely criticized the bill, claiming it overlooks Trump’s “blatant crypto corruption.” She pointed to Trump’s numerous crypto ventures, including a memecoin, a mining company, and a fast-growing stablecoin, USD1. “Trump and his family have already pocketed hundreds of millions... and they stand to make hundreds of millions more if this bill passes,” she warned.
As per Kraken's latest price feeds, the crypto market is showing strong momentum across the board. Bitcoin is trading at $105,125, up 2.3% in the past 24 hours, while Ethereum has gained 4.3%, trading at $2,509.59. Major altcoins like XRP, Solana, and BNB are also in the green, reflecting a broad market upswing.
Should you invest in Bitcoin ETFs?
Of course, the existence of a cheaper and easier way to trade Bitcoin doesn’t make the digital coin a buy, only cheaper and easier to do so. So crypto ETFs are a good way for traders to play Bitcoin or Ethereum if that’s already their intent, especially if it helps them avoid dubious crypto exchanges.
Former SEC chief Gary Gensler nonetheless warned investors about cryptocurrency despite his agency’s approval of Bitcoin funds. “Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” he said in 2024.
In its short lifetime, Bitcoin has been notoriously volatile, rocketing and plunging precipitously. That volatility has been great for adept traders since they make money on the volatility, and it hasn’t been too bad either for traders who have the stomach to hold on through the highs and lows. But many people tend to buy high and sell low, as the volatility melts their resolve.
Finally, it’s vital to know that Bitcoin is not backed by anything except the sentiment of traders. Unlike a stock, which is backed by the assets and cash flow of an underlying business, Bitcoin and most other cryptocurrencies rely solely on traders’ expectations to prop up their prices. It’s what investing experts call the “greater fool theory of investing,” since traders make money only by selling to someone else who is more optimistic about the cryptocurrency’s price potential.
For this reason, legendary investor Warren Buffett has long avoided cryptocurrency, even going so far as to say that Bitcoin is “probably rat poison squared.”
Does crypto make sense in your portfolio?
A financial advisor can work with you to create a balanced portfolio that meets your short- and long-term goals.
Where can you buy the best Bitcoin ETFs?
Bitcoin ETFs are generally available at any broker that allows customers to purchase stocks on a major U.S. exchange. The best brokers for stock trading allow you to buy any available ETF with no commission, so you can get in and out of a position at a low cost.
Bottom line
The emergence of spot Bitcoin ETFs makes it easier and cheaper for traders to take a stake in the digital currency using just their traditional broker. These funds may well open up Bitcoin to wider acceptance as a store of value and push up the price of the cryptocurrency even more.
This article has been published in bankrate.com via Yahoo News.
