U.S. Senate Advances GENIUS Act To Regulate Stablecoins

In a procedural vote held on May 19th, the Senate voted 66-32 in favor of moving the Genius Act forward, setting the stage for a formal debate on the Senate floor in the coming days.

A Shift In Democratic Support Clears The Path

The bill had initially faced resistance from several Democratic lawmakers who expressed concerns about President Donald Trump’s increasing influence in the crypto industry.

However, in a notable turnaround, key Democrats including Senators Mark Warner, Adam Schiff, and Ruben Gallego changed their votes to support cloture, a procedural motion that ends debate on whether to consider the bill. This shift allowed the bill to pass the critical vote threshold and proceed to the debate phase.

The U.S. Senate Voted 66-32 To Advance Discussions Pertaining To The GENIUS Act

Source: U.S. Senate

The support from both parties also highlights a growing bipartisan consensus on the need to regulate the stablecoin market, which currently holds a valuation of nearly $250 billion.

A Memorial Day Deadline?

Senator Cynthia Lummis, a Republican and one of the bill’s primary sponsors, expressed optimism about the legislation’s timeline. Speaking on May 15th, Lummis stated that having the GENIUS Act passed by Memorial Day, which falls on May 26th this year, is a “fair target.”

She said:

“We’ve made tremendous progress in building consensus around this bill. It’s essential that the U.S. leads in setting responsible rules for digital assets, particularly stablecoins.”

 

Trump’s Crypto Ties & AML Concerns

The bill’s progress had been stalled earlier this month when several Democrats pulled their support, citing potential ethical conflicts related to Donald Trump’s sprawling ventures in the crypto sector.

These include a series of digital currency projects such as meme coins, a crypto trading platform, a mining firm aiming for a public listing, and a fast-growing stablecoin dubbed USD1, now ranked the seventh-largest by value, according to CoinGecko.

Senator Mark Warner, while still voicing unease about Trump’s crypto dealings, emphasized the importance of not allowing political controversies to hinder regulatory progress. He said:

“We cannot afford to keep standing on the sidelines while blockchain technology continues to evolve globally. If we don’t shape this future, someone else will, likely in ways that undermine our democratic values.”

 

U.S. Senators Give Their Opinions

Democratic Senator Elizabeth Warren, a vocal critic of the crypto industry, remains one of the bill’s staunchest opponents. Prior to the vote, Warren delivered a pointed critique of the GENIUS Act, accusing it of failing to protect against what she described as “Trump’s blatant crypto corruption.”

Senator Warner also chimed in, saying the United States cannot afford to be left behind when it comes to stablecoin regulation.

Senator Warner Addressing The GENIUS Act

Source: warner.senate.gov

In any case, the broader Senate body appears to be prioritizing comprehensive oversight and structure for the growing stablecoin market over partisan disputes.

Building On Previous Legislative Efforts

The GENIUS Act builds upon various previous regulatory efforts, most notably the Clarity for Payment Stablecoins Act introduced in October by then-Representative Patrick McHenry. Hagerty’s bill refines many of the earlier proposals, incorporating more rigorous compliance standards and clarity around issuer responsibilities.

The legislation also comes amid increasing global attention on stablecoins, especially given their use in cross-border payments and DeFi platforms. With the GENIUS Act, lawmakers hope to solidify the U.S.’s leadership role in setting global standards for digital assets.

Moreover, now that the procedural hurdle has been cleared, the GENIUS Act will proceed to full debate on the Senate floor. Amendments could be proposed during this stage, potentially altering certain sections of the bill. However, the strong bipartisan support seen in the cloture vote suggests that the bill is well-positioned for passage.