As U.S. lawmakers circulate an updated draft agreement on the GENIUS Act, an acronym for Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 Act, that could all be about to change due to the potential emergence of domestic regulatory clarity around dollar-backed stablecoins. Senate Democrats are now warning that the bill, as originally drafted, could inadvertently open the floodgates to corruption, foreign threats and a new era of unregulated digital finance. Democratic lawmakers are asking for amendments to be made around consumer protection, bankruptcy and ethics, as well as “robust financial controls” for private stablecoin issuers, such as tech companies. Ultimately, whether the GENIUS Act becomes law, and in what form, could redefine the future of finance in America. The regulatory framework offers the promise of clarity and the peril of loopholes alike, as well as the challenge of reconciling innovation with oversight. The updated GENIUS Act bill explicitly ensures that existing laws enforced by the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) remain applicable to stablecoin issuers, and prevents the new regulatory regime from becoming a loophole for evading securities laws. Issuers will also face strict bans on promoting yield or interest-bearing features — a move designed to curb risks akin to those that triggered past collapses in the crypto lending space. Additionally, naming restrictions will prevent companies from using terms like “United States” or “USG” in product branding, reducing the risk of misleading consumers about government backing. Issuers located in countries under comprehensive U.S. sanctions — or deemed money laundering risks — are barred from operating in the U.S. market, closing potential backdoors for illicit finance. Democrats also secured tough restrictions on non-financial publicly traded companies — namely tech giants like Meta Platforms Inc. and Amazon.com Inc. — from issuing their own stablecoins unless they meet rigorous standards. The language aims to preserve the separation between commerce and banking, a long-held policy pillar that critics argue could be undermined by digital assets.