GENIUS Stablecoin Bill marked a significant milestone on May 19, 2025, as the U.S. Senate voted 66-32 to advance it for full debate, overcoming a prior setback. This legislation aims to establish the first federal framework for regulating stablecoin market, ensuring consumer protection and U.S. leadership in digital assets. This article explores the bill’s progress, amendments, and ongoing debates.
A Pivotal Step for Stablecoin Regulation
GENIUS Stablecoin Bill, led by Senator Bill Hagerty and co-sponsored by Tim Scott, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks, seeks to regulate stablecoin market with stringent standards. It mandates 100% backing by USD or liquid assets, annual audits for issuers exceeding $50 billion, and restricts foreign stablecoin issuance in the U.S. while allowing secondary trading. The Treasury gains authority to act against non-compliant foreign issuers, bolstering crypto regulation.
The bill’s advancement follows a failed May 8 vote, where it fell short at 48-49 due to Democratic opposition. Senate Majority Leader John Thune’s push for a procedural vote, coupled with negotiations, secured bipartisan support, with 16 Democrats flipping their votes. Senator Hagerty stated on X, “This vote brings us closer to passing landmark legislation for digital assets, protecting consumers and reinforcing U.S. technological dominance.”
Democratic Shift and Key Amendments
GENIUS Stablecoin Bill initially faced Democratic resistance over concerns about inadequate anti-money laundering (AML) measures, foreign issuer oversight, Big Tech’s role in stablecoin market, and potential conflicts of interest tied to former President Donald Trump’s crypto ventures, notably USD1 by World Liberty Financial. Democrats feared the bill could amplify Trump’s financial influence, especially after a $2 billion Binance deal involving USD1.
Read more: GENIUS Stablecoin Bill Blocked in Senate Vote
Within two weeks, bipartisan negotiations introduced amendments addressing these issues:
- Conflict-of-interest rules for senior federal officials, excluding the president and vice president.
- Restrictions on Big Tech issuing stablecoins if they collect sensitive user data without explicit consent.
- Enhanced national security and consumer protection provisions.
These changes swayed key Democrats, including Ruben Gallego, Mark Warner, and Kirsten Gillibrand, to support the bill, achieving the 60-vote cloture threshold. Senator Lummis emphasized the goal of final passage by May 26, aligning with the crypto regulation timeline.
Persistent Controversies
GENIUS Stablecoin Bill remains contentious, particularly over exemptions for the president and vice president. Senator Elizabeth Warren criticized this loophole, arguing it fails to address Trump’s ties to USD1, which she claims fuels “crypto corruption.” She warned that the bill could expand the stablecoin market tenfold, amplifying USD1’s influence, especially with its $2 billion market cap and high-profile users like Abu Dhabi’s MGX.
Despite amendments, Warren and others argue the bill prioritizes industry growth over robust oversight, risking financial stability and consumer protections in the crypto regulation landscape. Online discussions on X reflect mixed sentiments, with some praising the bill’s consumer safeguards and others echoing Warren’s corruption concerns.
Next Steps
GENIUS Stablecoin Bill now enters full Senate debate, with potential amendments before a final vote. If passed, it will proceed to the House, where similar legislation, the STABLE Act, awaits. Approval could see President Trump sign it into law, cementing U.S. leadership in digital assets. However, unresolved issues around Trump’s involvement may shape further negotiations.