The GENIUS Act, a blockbuster bill aimed at regulating stablecoins, passed in the U.S Senate and is now headed to the House of Representatives. With the House now set to vote on the bill, it has attracted the attention of policymakers, investors, and crypto leaders. Following the progression of the crypto-friendly bill, U.S President Donald Trump has publicly endorsed the bill, urging lawmakers to expedite its approval. He also expressed strong conviction that the bill would “make America the UNDISPUTED Leader in Digital Assets.” 

As stablecoins become central to the digital economy, the GENIUS Act aims to introduce clarity, trust, and structure to their issuance and usage. The bill champions federal oversight, consumer protection and incentives to drive stablecoin adoption. Nevertheless, the bill has sparked various debates, with experts including James Saruchera, Peter Schiff, and Fred Krueger expressing their opinion. 

GENIUS Act to Enhance ‘Responsible Innovation’; Saruchera

James Saruchera, the Co-founder of Afrik – a digital platform designed to unlock Africa’s economic potential through borderless, transparent, and decentralized financing, is embracing the GENIUS Act. As per a commentary shared with Blockchain News, James views the bill as an overdue effort to bring legal clarity to stablecoins. Speaking from experience, he underlined how stablecoins have already become essential for emerging markets.

“The GENIUS Act is a timely and pragmatic step toward bringing clarity to the digital asset space, particularly for stablecoins, which are fast becoming foundational to global finance,” Saruchera noted. “Last year, USDT alone processed more transaction volume than Visa and Mastercard combined. That kind of scale can’t remain in regulatory limbo,” James stated. 

James also emphasized that stablecoins aren’t just speculative tools. Rather, they are unlocking economic potential in underserved regions by enabling low-cost, borderless, and instant transactions. 

“In a previous role launching Africa’s first stablecoin, I saw firsthand how lower-cost, instant, borderless transactions can unlock enormous potential for trade and financial inclusion,” he said. “But with that power comes the need for clear rules,” he noted.

He further stressed that regulation must encourage responsible innovation while preventing systemic risks. Without clear regulations, bad actors might exploit loopholes which could undermine trust in the whole digital asset ecosystem.

“A well-defined framework on who can issue stablecoins, and under what conditions, is essential,” Saruchera added. “Digital asset regulation must be adaptable, but it’s encouraging to see legislation that recognizes both the risks and the transformative potential of this technology.”

Schiff Criticizes Dollar-Backed Stablecoins

However, not everyone shares Saruchera’s enthusiasm. Economist and long-time gold advocate Peter Schiff, criticized the GENIUS Act and dollar-backed stablecoins altogether. Schiff argues that tying stablecoins to a depreciating fiat currency like the U.S. Dollar is fundamentally flawed. 

I get Bitcoin, but not U.S. dollar stablecoins. If you're going to introduce a third party custodian, why settle for a token backed by a flawed fiat currency like the dollar, when you can own one backed by gold? You get the same liquidity, but you also get a real store of value.

— Peter Schiff (@PeterSchiff) June 19, 2025

He further maintains that gold-backed stablecoins would offer the same liquidity, but with intrinsic value and inflation resistance. Schiff argues that this is something a fiat currency like the U.S dollar lacks. 

Fred Krueger Backs GENIUS Act Citing that it ‘Provides Cover’

In contrast, Bitcoin investor Fred Krueger believes the GENIUS Act could radically expand stablecoin adoption. He projects that major e-commerce players, starting with Amazon, will accept stablecoins within the next 12 months. Shopify already supports such payments via Stripe. 

Krueger credits the GENIUS Act’s provisions, including AML/KYC compliance, consumer protection, and cross-border efficiencies, as key enablers. He further likened the moment to the internet boom with potential to bolster DeFi and Bitcoin adoption. 

“This is going to be an absolute bonanza for the crypto-economy. It will be like 1999 — nobody will want to be late to the party. This means self hosted wallets will explode. DeFi will explode. And Bitcoin will explode as the preferred store of value,” Krueger wrote.

As the bill moves to the House of Representatives, the debates will continue. Crypto leaders eye not just how the bill will regulate stablecoins, but also what kind of future stablecoin could build.