TLDR
- Lawmakers have introduced bipartisan amendments to the GENIUS Act after it failed in the Senate.
- The amendments could prohibit Big Tech companies like Meta, Amazon, and Google from issuing stablecoins.
- One draft of the GENIUS Act may even ban Big Tech from holding any form of stablecoin.
- The bill introduces new requirements on consumer data privacy, financial risk, and fair business practices.
- The amendments also prevent stablecoins from using US-themed branding to avoid confusion with federal entities.
Lawmakers introduced bipartisan amendments to the GENIUS Act after it failed in the Senate last week. These amendments address concerns from both parties while introducing major restrictions on stablecoin activities. The GENIUS Act now targets Big Tech by imposing limitations on issuing or holding stablecoins, raising new compliance hurdles.
Meta and Google Face Crypto Limits
Senators revised the GENIUS Act to prohibit non-financial public companies from issuing stablecoins under strict regulatory conditions. These conditions include compliance with financial risk controls, data privacy rules, and business practice standards. The aim is to prevent firms like Meta, Amazon, and Google from entering the digital currency space.
The new language reinforces the line between banking and commerce, which many lawmakers view as critical for market stability. It follows Meta’s recent renewed interest in stablecoins, despite past regulatory pushback and failed initiatives. Lawmakers argue that firms with large consumer bases should not mix financial products with tech platforms.
🚨NEW: Big Tech language of page 2 of the GENIUS Act text. ⬇️ https://t.co/D8k7f2MiTE pic.twitter.com/lqgSCOJGOb
— Eleanor Terrett (@EleanorTerrett) May 15, 2025
Reports suggest another draft version may block Big Tech firms from holding stablecoins under any circumstances. This version would completely restrict firms like Google and Microsoft from owning these digital assets if passed. However, as the GENIUS Act language remains under negotiation, this provision has yet to be confirmed.
Here's a preview of how the GENIUS Act might — final text pending — limit major tech companies from owning stablecoins.
Tech companies would be prohibited from issuing stablecoins "unless they can meet strict criteria regarding financial risk" https://t.co/Lh2h4ZoxO8 pic.twitter.com/Wp0UtwbsIA
— Brendan Pedersen (@BrendanPedersen) May 15, 2025
GENIUS Act Tightens Rules on Branding
The GENIUS Act amendments also restrict stablecoins from using US-themed branding to prevent misleading associations with federal institutions. This proposal responds directly to recent cases like the controversial USD1 token. That product used patriotic branding without any government affiliation, prompting bipartisan criticism.
Amendments grant enforcement authority to the Treasury Department, reducing the role of the SEC and CFTC. Lawmakers introduced this shift after recent capacity reductions at both agencies weakened oversight efforts. The Treasury is expected to handle investigations and penalties for noncompliant stablecoin issuers.
New provisions also make it easier to launch enforcement actions without requiring prolonged administrative procedures. Lawmakers claim this improves regulatory response speed and strengthens consumer protections. The GENIUS Act, therefore, introduces a more centralized and actionable enforcement structure.
Revised GENIUS Act Gains New Support
Another section of the GENIUS Act amendments names federal employees with potential conflicts of interest, including Elon Musk. It highlights concerns about overlapping interests between public roles and private stablecoin activities. This provision aims to improve transparency and reduce perceived bias in regulatory decisions.
The proposed restrictions are seen as key concessions to win over skeptical senators and bipartisan support. Recent developments around stablecoin misuse and branding controversies shaped much of the amendment content. The revised GENIUS Act now positions itself as a comprehensive framework for digital currency regulation.
Though the bill failed in its earlier form, these changes clearly respond to the opposition it faced. Lawmakers hope the amended bill will resolve prior objections and secure the support it lacked last week. It could reshape stablecoin operations across the tech and finance sectors if passed.
