GENIUS Act Amendment Prohibits Big Tech from Issuing Stablecoins, Strengthens Enforcement Mechanisms

BlockBeats News, May 15th, according to crypto journalist Eleanor Terrett, revealed that the latest bipartisan amendment draft of the GENIUS Act received by the U.S. Senate has strengthened key regulatory measures. It explicitly prohibits stablecoin issuers from falsely claiming FDIC insurance coverage or endorsement by the U.S. government and prohibits the use of terms such as "United States" or "U.S. government" in the stablecoin's name to avoid consumer confusion.

Most notably, the amendment includes restrictions on tech giants, explicitly prohibiting non-financial public companies such as Meta, Amazon, Google, and Microsoft from issuing stablecoins unless they meet strict financial risk, consumer data privacy, and fair business practice standards. This is in line with Trump's "America First" vision, aimed at separating the banking industry from Silicon Valley tech companies' monopoly tendencies.

The amendment also strengthens enforcement mechanisms, allowing the Treasury Department to suspend the issuer's registration if there is reckless or intentional misconduct, and expands the ethical standards coverage for special government employees (including Elon Musk) to ensure consistent application of financial conflict of interest standards. In short, these adjustments restrict the financial expansion of large tech companies but add more cumbersome procedures.