TLDR
- The US Senate voted 66-32 to advance the GENIUS Act for stablecoin regulation
- 16 Democrats joined Republicans to move the bill forward after blocking it two weeks earlier
- An amendment was negotiated addressing consumer protections and limits on tech companies
- Democrats raised concerns about potential conflicts with Trump family crypto ventures
- The bill requires stablecoins to be fully backed and issued only by licensed entities
The United States Senate has moved forward with a major cryptocurrency regulation bill known as the GENIUS Act, marking a step toward establishing the first regulatory framework for stablecoins in the country. The procedural vote passed with bipartisan support of 66-32, setting up the bill for debate on the Senate floor.
With the U.S. Senate voting to advance the GENIUS Act, paving the way for its passage which would provide clear regulations for U.S. stablecoins, fiat-backed stablecoins are on the cusp of being adopted at a global scale.
Stablecoins enable regular consumers and institutions… pic.twitter.com/J6mh2M8EZf
— Chainlink (@chainlink) May 20, 2025
The Guiding and Establishing National Innovation for US Stablecoins Act aims to regulate the nearly $250 billion stablecoin market, which is currently dominated by Tether and Circle’s USDC. The legislation requires stablecoins to be fully backed, undergo regular security audits, and receive approval from federal or state regulators.
The bill’s advance comes after Democratic senators blocked an earlier attempt to move it forward. Several Democrats changed their votes to support the motion after bipartisan negotiators reached an agreement on an amendment addressing key concerns.
The negotiated amendment includes new changes to consumer protection safeguards and limits on tech companies issuing stablecoins. It would also extend ethics standards to special government employees, which would temporarily apply to Elon Musk and tech entrepreneur David Sacks.
Senator Bill Hagerty introduced the GENIUS Act on February 4, building on the discussion draft he submitted for former Representative Patrick McHenry’s Clarity for Payment Stablecoins Act in October. Under the bill, only licensed entities would be allowed to issue stablecoins, while algorithmic stablecoins would be restricted.
Democratic Concerns About Trump’s Crypto Ventures
Many Democrats expressed concerns about potential conflicts of interest involving President Donald Trump’s cryptocurrency ventures. Trump and his family have launched various crypto projects, including memecoins, a crypto platform, a crypto mining company, and a stablecoin called USD1.
Senator Elizabeth Warren, a longtime crypto skeptic, was one of the strongest opponents of the stablecoin bill. Speaking before the vote, she argued that the legislation failed to address what she called Trump’s “blatant crypto corruption.”
“Trump and his family have already pocketed hundreds of millions of dollars from his crypto ventures, and they stand to make hundreds of millions more from his stablecoin, USD1, if this bill passes,” Warren said on the Senate floor.
The bill text includes a provision that would “prohibit any member of Congress or senior executive branch official from issuing a payment stablecoin product during their time in public service.” However, some Democrats have argued this provision needs to be stronger.
Several Senate Democrats have introduced bills targeting the Trump family’s crypto ventures to prevent the president from potentially profiting off the deals. Senator Michael Bennet plans to offer legislation called the STABLE Act as an amendment to the GENIUS Act.
Path Forward For Crypto Regulation
Despite these concerns, many lawmakers acknowledged the need for regulation in the rapidly evolving cryptocurrency space. Senator Mark Warner, who voted to advance the bill, explained his position in a statement.
“Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight, hide shady financial dealings, and personally profit at the expense of everyday Americans,” Warner wrote. “But we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay. If American lawmakers don’t shape it, others will — and not in ways that serve our interests or democratic interests.”
Republican Senator Cynthia Lummis, one of the bill’s key backers, said she thinks it’s a “fair target” to have the GENIUS Act passed by May 26 — Memorial Day in the US.
Senate Majority Leader John Thune criticized Democrats for delaying the vote, pointing out that no changes had been made to the underlying bill that Democrats blocked two weeks ago. He expects the Senate won’t vote on final passage before it leaves for the Memorial Day recess.
If the Senate ultimately passes the GENIUS Act, its future in the House remains unclear, where there is a different bill to regulate stablecoin issuers. Cryptocurrency advocates argue that Congress should also pass legislation to determine regulatory treatment of digital assets and digital asset securities.
Kara Calvert, the vice president for public policy at Coinbase, expressed support for the bill, stating, “The winners, if Congress passes this bill, are Americans who want to make payments faster and easier to access. It’s transformational technology, so passing this bill is a win for them.”
The procedural vote on May 19 sets the bill up for further debate, bringing the US one step closer to establishing a comprehensive regulatory framework for stablecoins.
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