Following the Senate's failure to pass the GENIUS Act last week, bipartisan amendments were introduced that catered to the anti-crypto group's demands, imposing important restrictions. Notably, these changes aim to prevent major tech companies from issuing or potentially holding stablecoins, enhancing transparency and enabling enforcement actions on non-compliant firms.

The GENIUS Act, crucial for regulating stablecoins in the US, faced setbacks in the Senate but might have a chance with the new amendments. These amendments target the concerns that led to the initial failure, focusing on preventing fraud and clarifying that stablecoins lack consumer protection from the FDIC or federal backing.

One key amendment prohibits non-financial publicly traded companies from issuing stablecoins unless they adhere to strict criteria related to financial risk, consumer data privacy, and fair business practices. This measure aims to prevent tech giants like Meta, Amazon, Google, and Microsoft from issuing stablecoins and maintains the separation between banking and commerce.

While reports suggest varied versions of the amendments, the final text is yet to be determined. These changes reflect lawmakers' urgency in regulating stablecoins given recent controversies and incidents in the crypto space.

In particular, the amendments aim to restrict tech companies from launching stablecoins, emphasizing the need to separate banking and commerce. The proposals include provisions for enforcement actions against stablecoin issuers and the involvement of the Treasury in regulation efforts, addressing concerns about conflicts of interest and the influence of big tech players like Elon Musk.

Despite the uncertainties surrounding the finalization of these amendments and the passage of the GENIUS Act, they signal a significant shift towards addressing the concerns of those skeptical about cryptocurrencies in Congress.