U.S. Senate Advances GENIUS Act in Landmark Vote, Paving Way for Stablecoin Oversight
In a pivotal step for the regulation of digital assets, the U.S. Senate voted on Monday to advance the GENIUS Act — a bipartisan bill aimed at establishing a national framework for stablecoins. The move was hailed by lawmakers and industry leaders as a historic moment that could strengthen the role of the U.S. dollar in the evolving global digital economy.
The legislation, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, cleared a key procedural hurdle with a 66-32 vote. This cloture vote allows the bill to proceed to further debate, amendments, and eventually a final vote in the Senate.
A Step Toward Regulatory Clarity
The GENIUS Act outlines strict requirements for stablecoin issuers, including full backing by U.S. dollars or comparable high-liquidity assets, mandatory annual audits for entities with over $50 billion in market capitalization, and additional provisions for foreign-issued stablecoins.
Senator Bill Hagerty (R-TN), the bill’s lead sponsor, emphasized its potential to modernize America’s financial system. “This bipartisan legislation will bring America’s payment system into the 21st century,” he said, noting it would bolster consumer protections and reinforce global confidence in the U.S. dollar. Hagerty predicted that demand for U.S. Treasuries could rise by over $1 trillion as a result.
Senator Cynthia Lummis (R-WY), a co-sponsor, echoed that sentiment: “Digital assets are the future and now we're one step closer to ensuring America leads the way.”
Industry Applauds Bipartisan Momentum
Crypto advocates welcomed the Senate’s decision as a major milestone. Ji Kim, president and acting CEO of the Crypto Council for Innovation, called the vote “truly historic” and credited months of bipartisan collaboration for its success.
The crypto community had mobilized ahead of the vote, with more than 60,000 emails reportedly sent to lawmakers urging support for the bill, according to advocacy group Stand With Crypto.
Coinbase’s chief policy officer, Faryar Shirzad, described the outcome as “a historic early win” in the broader effort to pass comprehensive crypto legislation, while Jake Chervinsky, chief legal officer at Variant Fund, noted that though challenges remain, “this was the hardest part.”
Political Divides Persist
Despite bipartisan support, not all lawmakers are on board. Senator Elizabeth Warren (D-MA) criticized the bill for what she claims is inadequate scrutiny of political and financial connections tied to former President Donald Trump. She also voiced concern over USD1, a new stablecoin launched by World Liberty Financial.
“There is no excuse for Congress to pass a crypto bill that will turbocharge Trump’s corruption,” Warren stated.
Looking Ahead
The GENIUS Act still faces a legislative path that includes a formal Senate vote and parallel efforts in the House of Representatives, where the related STABLE Act awaits consideration. Nonetheless, Monday’s vote marks a significant shift in how Washington views digital currencies and reflects growing consensus on the need for regulatory clarity.