Key Takeaways:
- The U.S. Senate advanced the GENIUS Act regulating stablecoins with a 66-32 vote, overcoming prior Democratic resistance.
- The bill includes requirements like full asset backing, security audits, and licensing restrictions for stablecoin issuers.
- Elizabeth Warren criticized the bill for enabling Trump’s crypto interests, citing his family’s profits from the USD1 stablecoin.
The U.S. Senate has advanced the GENIUS Act, a bipartisan bill aimed at regulating the $250 billion stablecoin market.
The legislation passed a key 66-32 procedural vote, setting it up for formal debate.
JUST IN: 🇺🇸 U.S. Senate voted to advance the Genius Stablecoin Bill – CNBC pic.twitter.com/oxvinpNT3a
— Bitcoin Archive (@BTC_Archive) May 20, 2025
The Guiding and Establishing National Innovation for U.S. Stablecoins Act proposes full asset backing for stablecoins, mandatory audits, and oversight by federal or state regulators.
It also limits issuance to licensed entities and bans algorithmic stablecoins.
Initially blocked by Democrats over concerns about Donald Trump’s involvement in crypto—including his family’s stake in the USD1 stablecoin—some senators reversed course.
Senators Mark Warner, Adam Schiff, and Ruben Gallego supported the motion despite ethical concerns, arguing the U.S. must lead in blockchain regulation.
Senator Elizabeth Warren, however, remained opposed, calling the bill a vehicle for Trump’s “crypto corruption.”
The bill was introduced by Senator Bill Hagerty in February and builds on earlier efforts like the Clarity for Payment Stablecoins Act.
Republican Senator Cynthia Lummis expressed hope the GENIUS Act could be passed by Memorial Day.
Despite political tension, the bill’s advancement reflects growing consensus on the need for clear U.S. stablecoin regulations.
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