tl;dr
The Senate’s stablecoin bill, known as the GENIUS Act, has regained momentum after passing a key procedural vote, setting it on course for full passage soon. The bill had previously failed due to Democratic opposition linked to concerns over President Trump’s crypto conflicts of interest. Key Democr...
The Senate’s GENIUS Act stablecoin bill has regained significant momentum by passing a crucial procedural vote, positioning it for full passage and the establishment of a comprehensive legal framework for stablecoins in the United States.
Initially stalled due to Democratic opposition linked to concerns over President Trump’s crypto conflicts of interest, the bill garnered renewed support after a revised draft addressed key issues such as conflicts of interest, national security, and restrictions on Big Tech. This pivot allowed prominent Democrats who previously opposed the bill to back it this time around.
The legislation aims to regulate the issuance of stablecoins—cryptocurrency tokens typically pegged to the U.S. dollar—facilitating smoother digital asset trades and cross-border payments without relying on direct fiat currency interaction. It is expected that formal regulation will entice substantial investment from Wall Street, potentially unleashing billions or even trillions of dollars into the crypto market.
Passing the procedural vote with over 60 Senate votes, the GENIUS Act is likely to face a full vote soon, followed by consideration in the House and, if successful, the President’s signature to become law. Key Democrats such as Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Kirsten Gillibrand, and Angela Alsobrooks notably shifted to support the bill.
Despite concessions in the latest draft—like banning senior executive branch officials, excluding the president and vice president, from issuing their own stablecoins and imposing conditional limits on Big Tech’s stablecoin initiatives—some concerns about enforceability remain.
Industry lobbying played a critical role in reviving the bill’s prospects. Coinbase, a major crypto exchange, amplified pressure with public campaigns urging timely passage, signaling the sector’s urgency for regulatory clarity. Major industry players have invested heavily in political efforts to support crypto-friendly legislation, forecasting a transformative impact on the market.
Overall, the GENIUS Act could mark a turning point for U.S. crypto regulation, setting the stage for increased mainstream adoption and regulatory certainty in the stablecoin space.