11 Jun, 2025

GENIUS Stablecoin Bill Passes Key Vote, Advances in US Senate

Weeks after a stablecoin bill stalled over Trump-linked concerns, the Senate advanced the GENIUS Act.In a 68-30 vote, the US Senate chose to advance the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, more than a month after it was introduced.Speaking from the Senate floor on Wednesday, Majority Leader John Thune urged members of Congress to support the bill, echoing many of US President Donald Trump’s talking points on digital assets, including that the legislation would help make the US the “crypto capital of the world.”A majority of senators, including several Democrats, voted to invoke cloture for the bill, setting it up for debate and a full floor vote before potentially sending it to the House of Representatives for further consideration.“We want to bring cryptocurrency into the mainstream, and the GENIUS Act will help us do that,” said Thune.Thune said there was “more work to be done” for Congress in regard to digital assets, referring to a separate market structure bill being considered in the House. On Tuesday, two House committees voted to advance the bill, called the CLARITY Act, potentially setting it up for a full floor vote soon.Massachusetts Senator Elizabeth Warren spoke from the Senate floor, saying there were “core problems” with the GENIUS Act that the chamber had failed to address by not voting on certain bipartisan amendments. She also reiterated concerns from many Democrats about Trump’s ties to his family-backed crypto platform World Liberty Financial, and rewarding holders of his memecoin with dinner and access to the president.“Through his crypto business, Trump has created an efficient means to trade presidential favors like tariff exemptions, pardons, and government appointments for hundreds of millions, perhaps billions of dollars from foreign governments, from billionaires, and from large corporations,” said Warren. “By passing the GENIUS Act, the Senate is not only about to bless this corruption, but to actively facilitate its expansion.”“The GENIUS Act is riddled with loopholes and contains weak safeguards for consumers, national security, and financial stability.”Able to pass the Senate and House, and end up on Trump’s desk?Though many Democrats voted to invoke cloture, at the time of publication, some were continuing to request that Republicans consider amending the GENIUS Act. It’s unclear whether the bill will have enough support to pass the chamber, where Republicans hold a slim majority.After the first cloture vote failure in May, Trump’s “AI and crypto czar,” David Sacks, said the White House expected the GENIUS Act to pass in the Senate with bipartisan support. The companion bill to regulate stablecoins in the House, the STABLE Act, was still under consideration by the Financial Services Committee as of May.

09 Jun, 2025

Kaia Pledges Won-Pegged Stablecoin as South Korean Payment Stocks Rally

Kakao-backed blockchain Kaia joins South Korea’s stablecoin race as the tech giant’s payments app surges 30% on the stock market.Layer-1 blockchain Kaia has pledged to launch a South Korean won-based stablecoin following the Wednesday inauguration of President Lee Jae-myung, a left-leaning politician whose campaign included a series of crypto-friendly promises.Launching a won-based stablecoin is one of the crypto goals laid out during Lee’s campaign that set him apart from other crypto-friendly candidates.The issuance of stablecoins faces legal hurdles, as South Korea’s constitution grants exclusive authority over currency issuance to the central bank, the Bank of Korea.Still, Lee’s Democratic Party is leaning toward private-sector innovation. Lawmaker Min Byoung-dug, who leads the party’s Digital Asset Committee, has signaled support for private-issued stablecoins and is preparing to propose the Digital Asset Basic Act, a comprehensive legislative framework for the crypto industry.Kaia’s interest in stablecoins carries weight, given its backing by Kakao, the tech conglomerate behind many of South Korea’s essential digital services, including messaging, navigation and finance.Stablecoin beneficiaries’ stocks pumpBoth traditional and crypto investors in South Korea have responded enthusiastically to the new administration. According to a survey by the Korea Chamber of Commerce and Industry cited by multiple local outlets, almost 60% of respondents said they plan to expand their crypto holdings under Lee’s tenure.That optimism spilled into the stock market on Monday, as payment firms Kakao Pay and rival Danal both closed the day up 29.9%.Due to its digital wallet infrastructure and QR code payment system, Kakao Pay is widely seen as a potential beneficiary of a domestic stablecoin. The firm is the fintech arm of Kakao, whose Web3 subsidiary developed the Klaytn blockchain, now merged with Japanese messenger LINE-backed Finschia to form Kaia.The rally also reflects increasing confidence that stablecoin regulation will advance quickly. Kim Yong-beom, a former vice finance minister and until recently head of research at blockchain venture capitalist Hashed, has been appointed as President Lee’s chief policy officer.Lawmaker Min’s forthcoming Digital Asset Basic Act is expected to contain provisions for legalizing and overseeing won-pegged stablecoins, signaling that legislative support is coalescing behind the plan.Lee’s presidency and stablecoins cleared for takeoffThe main cloud of uncertainty hanging over Lee’s presidency has been his multiple ongoing criminal trials, which began before his election. The most politically sensitive case — a remand trial for alleged election law violations during his 2022 campaign — was initially scheduled to resume on June 18.South Korea’s Constitution grants presidents immunity from criminal prosecution except in cases of insurrection or treason, but it was unclear whether this would apply to trials already in progress before inauguration.On Monday, the Seoul High Court ruled that Article 84 of the Constitution does apply, indefinitely postponing the trial. The decision effectively clears the political runway for Lee’s administration to pursue its crypto agenda. Four other trials remain pending, with delays or suspensions now likely to depend on each court’s interpretation.