Although the Genius Act is a stable bill, Bitcoin enthusiasts in the United States should pay attention to the language in the bill because it is related to the private trading ability of cryptocurrency assets, including Bitcoin.
Two recent documents distributed among Democrats in the Senate Banking Committee show that Senate Democrats want to see an amendment to the Genius Act, which will significantly reduce user privacy in crypto transactions.
Senate Democrats’ Analysis of Genius Law
The first of these two documents is two entitled “Analysis of the latest draft genius bill by the Democratic People of the Banking Committee”.
The document is full of speech types related to the ranking members of Senate Banking Committee Senator Elizabeth Warren (D-MA).
It refers to stablecoins as a tool for illegal finance (although the largest stable issuer, Tether, often works with the Department of Justice (DOJ) and the FBI to stop illegal use of Stablecoins).
It also noted that the current iteration of the Genius Act “does not take any action on the actual imposition of fundamental obligations.” [crypto mixers] Prevent illegal financing. ”
The latter’s criticism and guidance of the bill are opposed to the guidance, and Deputy Attorney General Todd Blanche stated in a memorandum of April 7, 2025 that the Justice Department will no longer serve cryptocurrency mixing services targeting end-user behavior.
However, in this document, Senate Democrats noted that they plan to continue targeting crypto-mixed technologies, rather than those that abuse it.
If an amendment regarding crypto-mixer targeting is added to the revision of the Genius Act, this could affect Bitcoin users who use such technology in the name of retaining their privacy.
Letter from Democrats who oppose the Genius Act
Senate Bank Democrats also spread a second document on Monday.
The document is a letter signed by 46 advocacy groups against the Genius Act.
Brendan Pedersen of Punchbowl News shared a part of the letter on X.
The authors of the letter claimed that the Genius Act was not effective enough to prevent illegal finance, in part because it still allowed “a self-custodial wallet (KYC) requirement that lacked knowledge.”
If genius behavior is revised so that KYC is needed to fit all contact-stable wallets (including self-monitoring wallets), it may only be a matter of time before similar regulations are established for Bitcoin wallets.
Bitcoin transaction privacy threatened
Just because the act of genius does not directly refer to Bitcoin does not mean that Bitcoin will not be affected by it.
If Senate Democrats go to the goal of the bill, and crypto-mix becomes the goal of the bill, and the bill requires all touch-stable wallets to require users to use it with KYC, and the bill is incorporated into law, the anonymity of crypto-transactions will become a crime.
So while some bitcoins may be anti-stable, most of them will be bets, not anti-speciality. So if the iteration of the upcoming bill limits the ability to trade privately, contact them with elected officials and urge them to vote for the Genius Act.
