The US Senate has voted to advance the long-awaited GENIUS Act, a bill aimed at regulating the $250 billion stablecoin market, despite earlier opposition over concerns tied to Donald Trump’s crypto ventures.
On May 19, the Senate passed a key procedural vote, 66-32, to move the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) to the Senate floor for debate.
This came after several Democrats—Mark Warner, Adam Schiff, and Ruben Gallego—changed their earlier stance and supported the motion to invoke cloture.
Initially, Democrats had blocked the bill on May 8, citing ethical concerns over Trump’s growing crypto empire. His family has launched multiple crypto projects, including a stablecoin, USD1, which is already the seventh-largest by value.
Senator Elizabeth Warren strongly opposed the bill, claiming it fails to stop “turbocharge Trump’s corruption.” She warned that Trump and his family have already pocketed hundreds of millions and stand to earn more if the bill passes.
However, Senator Warner, while still uneasy about Trump’s influence, said, “But we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay.”
The GENIUS Act, introduced by Senator Bill Hagerty, would require stablecoins to be fully backed, regularly audited, and approved by state or federal regulators. Algorithmic stablecoins would be restricted, and only licensed entities could issue them.
Republican Senator Cynthia Lummis hopes the bill will pass by Memorial Day (May 26). The GENIUS Act, if passed, could transform the issuance and monitoring of stablecoins in the US.
Also Read: Hagerty: Stablecoins to Become Top U.S. Treasury Holders by 2030
