US Senate Nears Breakthrough on GENIUS Stablecoin Bill

The US Senate will hold a second vote Monday on the GENIUS Act, after the stablecoin bill failed to advance earlier this month. Senator Bill Hagerty said the chamber is “set to make history,” with bipartisan sponsors confident the revised language can win enough support.

The previous version fell short after Democrats raised concerns over anti-money laundering rules and protections against foreign issuers. A new draft includes restrictions on Big Tech and adds clearer consumer and bankruptcy safeguards to address those objections.

Senator Cynthia Lummis said the text is now finalized and procedural votes are set to begin. “I don’t want to be embarrassed next week like I was last week,” she told The Hill, referring to the failed first attempt.

House leaders say momentum is building, with a goal of sending the bill to the president by August. Despite political noise over Trump’s crypto ties, lawmakers insist the stablecoin framework must move forward to boost the dollar and modernize U.S. payments.

Binance and Kraken Block Phishing Attack Similar to Coinbase

Binance and Kraken successfully stopped recent phishing attacks similar to the $400 million breach reported by Coinbase. Attackers attempted to bribe customer service contractors over Telegram, seeking access to user data like home addresses and account balances. Internal safeguards and AI-based security systems reportedly allowed both exchanges to identify and shut down the infiltration attempts early.

Coinbase disclosed its own compromise in a May 15 SEC filing, noting that offshore contractors gave criminals limited access to internal records. In response, Coinbase terminated multiple employees and announced a $20 million bounty for information leading to the hackers’ arrest. The breach is estimated to cost Coinbase up to $400 million in reimbursements and system overhauls.

Bitcoin Author Wants Spam Attacks Made Costly

Economist Saifedean Ammous said that he supports funding a developer to make Bitcoin spam transactions more expensive and less effective. The author of The Bitcoin Standard responded to a proposal urging Bitcoin Core to merge code that would give node operators the ability to filter data-heavy inscriptions. Ammous likened the spam issue to email junk, calling it a never-ending challenge that still warrants active resistance.

The debate stems from how JPEGs and other non-financial data clog Bitcoin’s limited block space, raising fees and frustrating monetary purists. Critics, including Blockstream’s Adam Back, argue that spam filtering invites an arms race with technically savvy attackers. Ammous believes it’s worth attempting to bankrupt spam creators and is encouraging others to financially support proactive network defenses.

UK to Mandate Crypto Transaction Reporting in 2026

Starting January 1, 2026, crypto companies in the UK must report every user transaction, including names, addresses, tax IDs, and amounts moved. The reporting requirements apply to individuals, charities, and businesses, and noncompliance may trigger fines of up to £300 per violation. UK authorities have encouraged platforms to begin collecting user data now to ensure a smooth transition.

The measure aligns with OECD’s Cryptoasset Reporting Framework, aiming to modernize tax oversight and increase transparency in crypto markets. Lawmakers say the goal is to support industry growth while cracking down on fraud and financial misconduct. A separate bill introduced in April also seeks to bring crypto brokers, custodians, and crypto exchanges operating in the UK under a unified regulatory framework.

Data of the Day

Ethereum’s on-chain stablecoin volume surged to a record $1.47 trillion in April, triggered by institutional growth and major corporate integrations, according to data published May 15. USDC dominated the trend with over $500 billion in volume, while DAI and Sky’s USDS also saw significant growth. The milestone underscores Ethereum’s role as the preferred network for stablecoin settlements.

Meta and Stripe recently announced new stablecoin-based services, while Trump-affiliated World Liberty Financial’s USD1 token neared $2 billion minted. As stablecoin adoption accelerates, fee competition among issuers could benefit users but pressure profitability. Ethereum still leads despite growing competition from Layer 2s and other blockchains targeting the stablecoin market.

More Breaking News

• Galaxy Digital made its long-awaited Nasdaq debut, as CEO Mike Novogratz hailed it as the starting bell for crypto’s next era of public growth.
• BlackRock’s tokenized Treasury fund BUIDL has integrated directly with Euler on Avalanche, marking its first DeFi protocol partnership.
• World Liberty Financial rebuffed a U.S. senator’s corruption probe, saying it operates transparently and within American law.
• Blum co-founder Vladimir Smerkis was arrested in Moscow on large-scale fraud charges, prompting doubts around the app’s airdrop.
• A judge in Argentina ordered President Javier Milei’s bank records unsealed over a scandal tied to his promotion of the collapsed Libra token.
• An Alabama man was sentenced to 14 months in prison for hacking the SEC’s X account and triggering a brief $1,000 Bitcoin price spike.
• Wisconsin’s state investment board has sold its entire $350M stake in BlackRock’s Bitcoin ETF amid shifting crypto market conditions.
• Hong Kong police arrested 12 people in a $15M cross-border laundering scheme that used crypto exchange shops to hide illicit funds.
• A South Korean woman was jailed for two years for stealing nearly $500,000 in crypto and cash from her boyfriend while he slept.
• New Zealand police arrested 13 people in a $265M global crypto scam tied to an FBI racketeering and money laundering investigation.

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