U.S. Senate moves forward on landmark stablecoin regulation bill
GENIUS gets 66 Senate votes
The US Senate has taken a major step toward regulating the $250 billion stablecoin market, voting 66 to 32 in favor of advancing the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS).
This bipartisan vote reflects a growing political will to establish a regulatory framework for cryptocurrencies, despite concerns over former President Donald Trump’s strengthening ties to digital assets, The Block reports.
GENIUS bill overview
Introduced by Senator Bill Hagerty in February, the GENIUS Act proposes a comprehensive regulatory system for stablecoins — digital tokens pegged to fiat currencies such as the US dollar. The bill requires that stablecoins be fully backed by cash or liquid assets, undergo regular audits, and be issued only by licensed entities. Algorithmic stablecoins would face strict limitations.
Amendments and compromise
The bill was initially blocked by Senate Democrats over ethical and anti-money laundering concerns. However, after the inclusion of negotiated amendments that addressed key objections, the bill regained momentum. The revised version includes provisions for consumer protection, restrictions on tech company involvement, and enhanced ethical standards for federal officials — measures that could temporarily affect public figures like Elon Musk and David Sacks.
Criticism from Warren and democratic shifts
Not all concerns have been resolved. Senator Elizabeth Warren remains firmly opposed, arguing the bill fails to prevent Trump and his family from profiting off crypto ventures. Reports indicate Trump has launched his own stablecoin, USD1, which has quickly risen among the top-ranked by market capitalization, alongside his ventures in meme coins, mining, and blockchain platforms.
Loading...
Warren has called the bill “a tool for Trump’s crypto corruption,” warning it may serve only to enrich the former president. However, other Democrats — including Senators Mark Warner, Ruben Gallego, and Adam Schiff — have shifted their stance and now support the bill, citing the importance of US leadership in blockchain regulation.
Next steps and outlook
Senator Warner, despite expressing concern over Trump’s crypto ties, emphasized that the US must not fall behind in shaping digital rules. “Blockchain technology is here to stay,” he said. “If US lawmakers don’t define the standards, others will — and not necessarily in line with our interests or democratic values.”
The bill now moves to final deliberations and potential amendments. Senate leaders aim to bring it to a final vote before Memorial Day. However, its fate in the House remains uncertain, with lawmakers considering merging it into a broader digital asset regulation package.
Earlier, we reported that USD1, a US dollar-backed stablecoin launched by World Liberty Financial (WLFI) and endorsed by President Donald Trump, quickly rose to seventh place among the world’s largest stablecoins just two months after its debut.
