U.S. Senate Approves GENIUS, advancing the GENIUS Act with a 66-32 vote on May 19, 2025, to establish a federal framework for stablecoin regulation. This procedural victory revives the bill after a prior setback, marking a pivotal step toward modernizing the crypto market. This article explores the legislation’s progress, amendments, and implications for the U.S. financial system.
A Milestone for Stablecoin Oversight
U.S. Senate Approves GENIUS, clearing a procedural hurdle to bring the Guiding and Establishing National Innovation for U.S. Stablecoins Act to full Senate debate. Led by Senator Bill Hagerty and co-sponsored by Tim Scott, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks, the bill introduces the first comprehensive federal rules for stablecoin regulation. It mandates:
- 100% backing with USD or equivalent liquid assets.
- Annual audits for issuers with over $50 billion in market capitalization.
- A ban on foreign-issued stablecoins in the U.S., though secondary market trading is permitted.
- Treasury authority to act against non-compliant foreign issuers.
Hagerty stated on X, “This vote is a historic opportunity to pass foundational digital asset legislation, protecting consumers, fostering innovation, and reinforcing the USD’s global dominance.” The bill aims to solidify the U.S. financial system’s leadership in blockchain technology.
Democrats Reverse Opposition
U.S. Senate Approves GENIUS after Democrats, initially opposed on May 8, 2025, agreed to amendments addressing their concerns. Previously, all Democratic senators rejected the bill, citing:
- Weak oversight of foreign issuers.
- Insufficient anti-money laundering (AML) standards.
- Risks from former President Donald Trump’s crypto ties, notably his family’s World Liberty Financial stablecoin.
- Dangers of Big Tech issuing stablecoins.
Read more: Democrats Target Trump’s Alleged Crypto Profiteering
Within two weeks, bipartisan negotiations yielded key changes:
- Conflict-of-interest rules for senior federal officials, excluding the president and vice president.
- Restrictions on Big Tech issuing stablecoins if they misuse sensitive financial data without clear user consent.
- Strengthened national security and consumer protections.
These revisions swayed key Democrats, including Ruben Gallego, Mark Warner, Kirsten Gillibrand, Lisa Blunt Rochester, and Angela Alsobrooks, securing the 60 votes needed for cloture. Senator Lummis emphasized the goal of final passage by May 26, 2025, to cement the crypto market’s regulatory clarity.
Ongoing Controversies and Next Steps
U.S. Senate Approves GENIUS, but debates persist, particularly over exemptions for the president and vice president. Senator Elizabeth Warren criticized the bill, arguing it fails to address Trump’s influence via World Liberty Financial’s USD1 stablecoin, stating, “The Act amplifies Trump’s crypto ventures, enabling corruption through market expansion.” Despite this, the bill’s bipartisan support reflects a commitment to balancing innovation with oversight in the U.S. financial system.
Following Senate debate and a potential floor vote, the GENIUS Act will move to the House. If passed, it awaits President Trump’s signature. The legislation’s trajectory suggests the U.S. aims to lead global stablecoin regulation, competing with frameworks like the EU’s MiCA.
Conclusion
U.S. Senate Approves GENIUS, propelling the GENIUS Act toward shaping the crypto market’s future. With robust backing requirements and enhanced protections, it strengthens the U.S. financial system’s role in digital assets. As the House review looms, the bill’s outcome will define America’s stance on stablecoin regulation.
