Senate Moves GENIUS Act Forward, While NFA Issues Fraud Alert to FCMs and IBs
June brings two major regulatory updates financial firms should not overlook. From Capitol Hill to compliance desks, digital finance is under the spotlight.
Senate Clears Path for GENIUS Act Final Vote
On June 11–12, the U.S. Senate voted 68–30 to invoke cloture on the GENIUS Act—a key step toward regulating stablecoins nationwide. This procedural move cuts off debate and sets up the final vote, expected within days. The bill includes strict anti-money laundering (AML) provisions, reserve backing requirements, and restrictions on foreign stablecoin issuers. It also prohibits paying interest or yield on stable coin holdings.
Supporters say the bill will protect U.S. consumers and strengthen the dollar’s role in global finance. Critics, including Senator Elizabeth Warren, argue the bill doesn’t go far enough to address consumer protection and corporate governance loopholes.
If passed, the GENIUS Act will move to the House of Representatives, where the STABLE Act is already under review. A signed law could mean significant compliance shifts for firms involved in digital payments, fintech, and crypto fund administration.
NFA Warns FCM and IB Members of Fraudulent Account Activity
Meanwhile, the National Futures Association (NFA) issued an alert to FCM and IB Members after discovering multiple attempts to open accounts using fake IDs and false information. In these cases, bad actors created non-existent individuals and shell entities to gain access. Once approved, they engaged in high-risk trades, quickly requested withdrawals, and often failed to meet margin calls.
The NFA urges all firms to strengthen their onboarding due diligence and consider these risks during account opening. Verifying identity and legitimacy is critical in today’s environment of rising fraud attempts.
Stay Compliant, Stay Informed
Both updates show how regulatory oversight is evolving. Whether you’re trading digital assets or onboarding new clients, now is the time to strengthen your compliance strategy and stay ahead of emerging risks.
Talk to us about how we can help keep your firm compliant and prepared.