After multiple rounds of delays and political maneuvering, the U.S. Senate on May 19 passed a key procedural vote, clearing the path for the legislation of the GENIUS Act. This marks a decisive step forward for the establishment of a regulatory framework for stablecoins in the United States.
Stablecoins—cryptocurrencies pegged to fiat currencies such as the U.S. dollar—have long been regarded as a crucial bridge between the digital economy and traditional finance. However, amid tightening global crypto regulations, the U.S. has lacked a clear, unified legal framework for stablecoins. The advancement of the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act) could change that.
66 Votes in Favor: The Debate Resumes
The procedural vote passed with a 66–32 majority, surpassing the 60-vote threshold required to invoke cloture and move the bill to full Senate debate. An earlier attempt in early May was stalled due to partisan disagreements.
A shift in position from key Democratic senators played a critical role in this progress. Senators Mark Warner and Ruben Gallego, who had previously opposed the bill, changed course and supported the motion this time. According to a congressional aide who requested anonymity, recent revisions to the bill demonstrated “good faith” to some Democrats and prompted a reconsideration of their stance.
Controversy Around Trump’s Crypto Interests
Nevertheless, the GENIUS Act has not been without controversy. One of the major points of contention involves former President Donald Trump and his family’s substantial involvement in the cryptocurrency sector. Senator Elizabeth Warren, a vocal opponent of the bill, criticized it for lacking sufficient mechanisms to curb what she described as “crypto corruption” tied to Trump.
Warren pointed out that the Trump family has already profited significantly from various token projects, platforms, and stablecoins, including “USD1″—a token that has quickly climbed into the ranks of the world’s top seven stablecoins by market cap. Although the revised bill introduced new conflict-of-interest provisions restricting senior officials from issuing stablecoins, it notably exempts the president and vice president, a loophole that continues to draw public scrutiny.
Regulatory Framework Takes Shape
According to the current draft of the GENIUS Act, stablecoin issuance must meet several key requirements:
- Issuers must be licensed at the state or federal level;
- All stablecoins must be fully backed by verifiable reserve assets;
- Regular security audits must be submitted;
- Algorithmic stablecoins without asset backing are either restricted or prohibited.
The bill aims to fill the regulatory void in the stablecoin market and reduce systemic risk, offering consumer protection and financial system safeguards. Additionally, it includes provisions targeting tech giants, barring them from selling sensitive user financial data without consent.
Crypto Industry Mounts Pressure
Beyond political negotiation, the crypto industry itself has played a pivotal role in this legislative process. U.S.-based crypto firms, led by Coinbase, ramped up lobbying efforts and mobilized public support to pressure lawmakers. According to insiders, Coinbase used its political advocacy group “Stand With Crypto” to revise how it scores lawmakers and used its app to encourage users to contact their representatives and back the bill.
Industry analysts widely believe that if the GENIUS Act passes both chambers of Congress, it will significantly boost institutional confidence in crypto assets and enhance U.S. leadership in the global crypto innovation race.
While Senate approval removes a major roadblock, the bill still requires passage in the House of Representatives and must be signed into law by the president. Republican Senator Cynthia Lummis has expressed hope that the bill can be finalized by Memorial Day on May 26.
However, political uncertainty remains. Will Trump sign a bill that could potentially restrict his own financial interests? Will the House introduce a competing version of the legislation? These questions will ultimately determine the fate of the GENIUS Act.