TLDR
GENIUS Act mandates full stablecoin backing with cash or U.S. Treasuries.
Non-financial firms face limits on issuing stablecoins under new rules.
Trump-linked stablecoin sparks political concerns over market influence.
Senate cloture vote passed 68–30, paving way for final vote today.
The US Senate is set to vote today on the GENIUS Stablecoin Act, a bill that could shape the future of digital currency regulation. This vote follows weeks of committee discussions, cloture procedures, and revisions aimed at addressing concerns raised by lawmakers from both parties.
If the bill passes in the Senate, it will move on to the House of Representatives for further consideration. The outcome of today’s vote could mark a step toward regulating stablecoins within the United States under a federal framework.
Stablecoin Regulation Heads Toward Federal Oversight
The GENIUS Act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, proposes a regulatory framework for stablecoins, which are digital assets pegged to the value of traditional currencies such as the US dollar. The bill mandates that stablecoins must be fully backed by highly liquid assets such as cash or US Treasury securities.
Issuers with a market capitalization over $10 billion would be regulated at the federal level. State-level regulation would also be allowed, but only if it meets federal standards. The act aims to ensure that stablecoin issuers undergo annual audits and follow clear financial rules.
The legislation also restricts non-financial public companies, such as e-commerce or tech firms, from issuing stablecoins unless they meet strict financial safety and consumer privacy requirements.
Lawmakers Divided Over Privacy and Corporate Access
The bill has attracted support and criticism across party lines. Some Democratic lawmakers, including Senator Elizabeth Warren, have raised concerns about privacy and corporate influence. Warren said,
“If Congress doesn’t fix the GENIUS Act, billionaires like Elon Musk and Jeff Bezos could launch stablecoins that track your purchases, exploit your data, and squeeze out competitors.”
Senator Josh Hawley of Missouri also expressed strong opposition. He argued that the bill favors large technology companies, stating, “It’s a huge giveaway to Big Tech. It allows these tech companies to issue stablecoins without any kind of controls.”
To address these concerns, recent amendments have added restrictions preventing non-financial public firms from issuing stablecoins unless they meet specific criteria. The revised bill also provides consumer protections and sets standards for financial disclosures.
Trump-Linked Venture Raises Political Tensions
Another source of debate is President Donald Trump’s connection to World Liberty Financial, a firm that recently launched its own stablecoin. The stablecoin has quickly become the fifth-largest by market size, raising questions among lawmakers about political and financial influence.
A Senate aide commented, “The family is the difficult part,” referring to concerns about potential conflicts of interest. Senator Warren added that foreign investors could misuse the platform for corrupt practices.
Despite these concerns, the Senate moved the bill forward last week by passing a cloture vote 68 to 30, clearing the way for today’s final vote. This followed a previous failed vote attempt last month, which had lacked Democratic support. The revised bill now has more bipartisan backing, with at least 18 Democrats voting in favor during the latest procedural step.
Industry Leaders Expect Broader Use of Stablecoins
Market analysts and crypto companies see the GENIUS Act as a step toward bringing stablecoin innovation under US oversight. According to a report from broker Bernstein, once the act becomes law, stablecoins may expand their role from crypto trading tools to mainstream digital payment infrastructure.
The bill would also give regulated US issuers an advantage in the market, as international competitors face tighter restrictions. Bernstein’s report noted that stablecoins could become the “money rail of the internet” if the act is fully implemented.
The Senate is expected to reach a decision by the end of the day. If passed, the GENIUS Stablecoin Act will move to the House for the next legislative stage.
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