The U.S. Senate advanced the GENIUS Act on Wednesday with a 68-30 vote to invoke cloture. This important action prepares the bill to pass finally, which could happen as early as Monday. The lawmakers of both parties backed the legislation and became a milestone in the regulation of stablecoins.
The GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, would create federal standards for stablecoin issuance. It requires all stablecoins to be fully reserved with U.S. dollars or other liquid assets. The bill also has annual audit of large issuers and regulation of foreign participation.
This vote indicated that the Senate has momentum on regulating stablecoins following months of blocked talks. Although the bill invoked cloture, it will still be debated unless party leaders can reduce the timeframe. The final vote may take place earlier when there is an agreement on time.
GENIUS Act Gains Support After Revisions
Republican Senator Tim Scott, one of the bill’s main sponsors, led the bipartisan effort alongside several centrist Democrats. He positioned the GENIUS Act as a win for innovation and national security in the digital finance space. Republicans largely supported the bill, bolstered by backing from Trump’s policy advisors.
Provisions concerning foreign issuers and corporate stablecoins were the concern of some Senate Democrats. Senators Chuck Schumer, Amy Klobuchar, Elizabeth Warren, voted against the bill progression. Others such as Senator Ruben Gallego, however, supported it, and that is why the two-thirds majority was reached.
The GENIUS Act’s progress follows an earlier failed attempt in May that lacked any Democratic support. Lawmakers later modified the bill to address specific concerns raised by Democratic members. That shift helped attract cross-party backing and secured a renewed cloture vote.
Trump’s Crypto Ties Influence Debate
President Donald Trump’s advisors endorsed the GENIUS Act earlier this week, signaling executive support for the legislation. A formal statement said Trump would sign the bill if it reached his desk in its current form. He aims to have stablecoin legislation enacted before the August recess.
Trump’s ties to digital assets have raised ethical questions among lawmakers and watchdogs. His affiliated companies have launched memecoins and recently introduced a stablecoin through World Liberty Financial. These moves have increased scrutiny of the GENIUS Act and related crypto efforts.
Lawmakers continue debating whether Trump’s crypto interests present a conflict during regulatory policymaking. Some members of Congress have proposed merging the GENIUS Act with broader crypto regulation. That approach remains under consideration as committees advance additional bills.
House Action and Legislative Outlook
The GENIUS Act’s next hurdle lies in the House of Representatives, where a different stablecoin bill is under review. The House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy Act in May.
Both the Senate and House bills aim to regulate stablecoins but differ in key areas, including oversight of foreign issuers. The GENIUS Act includes stricter standards for stablecoin issuers with large market caps. The House version allows more flexibility in federal and state-level regulation.
Lawmakers from both chambers must reconcile the differences before a unified bill can move to the President. Negotiations are expected to continue as the Senate approaches its final vote. If passed, the GENIUS Act will represent a milestone in U.S. crypto policy.
FAQs
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What is the GENIUS Act?
The GENIUS Act is a U.S. Senate bill to regulate stablecoins through federal oversight and strict asset-backing requirements.
What does the bill require from issuers?
Issuers must fully back their stablecoins with U.S. dollars or similar assets and undergo annual audits if they are large.
Why did some Democrats oppose the bill?
Some opposed it due to provisions on foreign issuers, corporate issuance, and concerns about Trump’s crypto ties.
What is the next step for the GENIUS Act?
The Senate will hold a final vote. If passed, the bill moves to the House for further negotiation.
Could the GENIUS Act become law soon?
Yes, if both chambers agree on a final version, President Trump is expected to sign it before August.
Glossary of Key Terms
GENIUS Act – Guiding and Establishing National Innovation for U.S. Stablecoins Act, a bill to regulate stablecoins.
Stablecoin – A cryptocurrency pegged to the value of a stable asset like the U.S. dollar.
Cloture – A Senate procedure to limit debate and move a bill forward.
Audit – An official financial inspection, required annually for large stablecoin issuers under the GENIUS Act.
Issuer – An entity that creates and manages stablecoins for users and investors.
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