The US Senate voted 66–32 on Might 19, 2025, to advance the GENIUS stablecoin invoice, formally titled the Guiding and Establishing Nationwide Innovation for US Stablecoins Act. The movement to invoke cloture handed, shifting the invoice to full debate on the Senate ground.
The GENIUS stablecoin invoice proposes a nationwide regulatory construction for stablecoins, that are digital property pegged to fiat currencies. The invoice targets a market at present value almost $250 billion, dominated by USDT (Tether) and USDC (Circle).
The movement gained assist from Democratic Senators Mark Warner, Adam Schiff, and Ruben Gallego, who beforehand opposed the invoice. Their vote helped clear the procedural hurdle required for additional dialogue.
Trump Crypto Initiatives Increase Battle Issues
On Might 8, Democratic lawmakers blocked the GENIUS stablecoin invoice over issues about Donald Trump’s crypto involvement. They cited doable conflicts of curiosity associated to Trump’s monetary stake in digital property.
In line with public information and market knowledge from CoinGecko, Trump and his household have launched a number of crypto ventures. These embody a memecoin undertaking, a digital asset platform, a crypto mining enterprise getting ready for a public itemizing, and a stablecoin referred to as USD1.
USD1 has turn into the seventh-largest stablecoin by market worth, based mostly on CoinGecko rankings. This development raised issues amongst senators concerning the invoice’s implications for Trump’s monetary pursuits.
Senator Elizabeth Warren mentioned the laws doesn’t handle what she referred to as Trump’s “crypto corruption.” She added,
“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.”
Regardless of this, Senator Mark Warner voted to maneuver the invoice ahead. He said,
“We cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay.”
GENIUS Stablecoin Invoice Imposes Strict Guidelines on Issuers
Senator Invoice Hagerty launched the GENIUS stablecoin invoice on Feb․ 4, 2025. The proposed legislationoutlines strict tips for stablecoin issuers. It requires all stablecoins to be totally backed by reserve property.
Issuers should conduct common safety audits and procure approval from both federal or state regulators. The invoice permits solely licensed entities to difficulty stablecoins beneath US legislation.
The legislation additionally bans algorithmic stablecoins, which depend on software program code and market incentives quite than reserve property. The restriction is meant to scale back systemic threat following previous failures within the algorithmic stablecoin sector.
The GENIUS stablecoin invoice builds on earlier coverage drafts, together with the Readability for Cost Stablecoins Act submitted in October by former Consultant Patrick McHenry.
Might 26 Marked as Goal for Remaining Vote
Senator Cynthia Lummis, a lead Republican backer of the GENIUS stablecoin invoice, mentioned on Might 15 that lawmakers purpose to go the invoice by Memorial Day, Might 26.
She referred to as the date a “fair target” and mentioned the invoice ought to obtain full Senate consideration earlier than the vacation recess. The current 66–32 vote displays bipartisan momentum regardless of inner divisions over Trump-related controversies.
With debate set to proceed this week, the Senate will now look at the invoice’s language and enforcement mechanisms in better element.