U.S. Senate Advances GENIUS Act, Pushing Stablecoin Regulation Toward Final Vote
The U.S. Senate took a major step toward formalizing stablecoin regulations on Wednesday, voting 68-30 to invoke cloture on the Guiding and Establishing National Innovation for U.S. Stablecoins Act—better known as the GENIUS Act. The move clears the way for a final vote, which could happen as early as Monday, depending on negotiations between party leaders.
The GENIUS Act is designed to bring tighter oversight to the fast-growing stablecoin market. It would require issuers to fully back tokens with U.S. dollars or similar liquid assets, undergo annual audits if their market cap exceeds $50 billion, and comply with additional safeguards for foreign-issued stablecoins.
“This is a win for both innovation and national security,” said Sen. Tim Scott (R-S.C.), a co-sponsor of the bill, during remarks on the Senate floor. “We’ve proven that bipartisan cooperation is still possible in Washington.”
Support for the bill has largely cut across party lines, but not without friction. While some Democrats, including Sen. Ruben Gallego of Arizona, backed the legislation, others such as Sen. Chuck Schumer (D-N.Y.), Sen. Amy Klobuchar (D-Minn.), and Sen. Elizabeth Warren (D-Mass.) opposed it, citing concerns over provisions related to foreign issuers, corporate-backed stablecoins, and anti-money laundering measures.
The GENIUS Act also carries the endorsement of former President Donald Trump’s administration. In a policy statement released Monday, Trump’s advisors expressed full support, urging that the bill be signed into law before August. Trump has publicly leaned into the crypto space, with ties to various digital asset ventures including World Liberty Financial, which recently launched its own stablecoin, and plans for a Bitcoin treasury under Trump Media.
If the bill passes the Senate, it still faces hurdles in the House of Representatives. The House Financial Services Committee has already passed its own version of stablecoin legislation—the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act—by a vote of 32-17 in May. However, the full House has yet to vote on it.
Key differences between the Senate and House versions remain unresolved, including how stablecoin issuers would be regulated at the state versus federal level and how to address foreign-issued tokens like Tether. Reaching a compromise will be essential if stablecoin legislation is to move forward this year.
Meanwhile, the broader debate around crypto regulation is heating up. On Tuesday, both the House Financial Services and House Agriculture Committees advanced a separate, sweeping bill to regulate the digital asset market overall. That proposal drew significant Democratic pushback, particularly over potential conflicts of interest tied to Trump’s crypto ventures.