US Senate Vote on Stablecoin Bill: How the GENIUS Act Will Move Forward

The regulation of stablecoins in the United States has taken a significant step forward. On Monday, the U.S. Senate voted to advance the Guiding and Establishing National Innovation for U.S. Stablecoins Act, more commonly known as the GENIUS Act. 

The bill, which sets out to establish clear rules for stablecoin issuers, passed a key procedural hurdle with a 66 to 32 vote, signaling growing bipartisan interest in addressing the legal status of digital currencies tied to the value of real-world assets.

This recent Senate vote represents a turning point in the ongoing debate over how to regulate stablecoins, a fast-growing segment of the crypto market. While disagreement remains among lawmakers, the progress of the crypto stablecoin bill marks the possibility of a more defined path for the digital dollar economy.

What is the GENIUS Act?

The GENIUS Act, proposed by Senator Bill Hagerty of Tennessee, is a federal legislative effort to introduce comprehensive regulations for stablecoin issuers. 

Stablecoins are a type of cryptocurrency designed to maintain a fixed value, typically pegged to the U.S. dollar or another fiat currency. These digital assets have become a central part of decentralized finance and payment systems.

Under the GENIUS Act, any issuer of stablecoins would be required to:

• Fully back all issued tokens with real assets
• Provide monthly disclosures of reserve holdings
• Undergo annual independent audits if their market capitalization exceeds $50 billion

The bill also sets boundaries for what types of companies can issue stablecoins. In particular, it prohibits large technology companies from launching their own stablecoins unless they meet strict financial risk and consumer protection standards. 

Additionally, the act would restrict algorithmic stablecoins, which do not rely on traditional asset backing and are often more volatile.

Read also: The Banking Sector Adopts More Stablecoins! Projects More Adoption

Senate Debate and Democratic Opposition

Despite bipartisan support in the final procedural vote, the bill initially faced strong resistance from several Democratic senators, who voiced concerns over consumer safety, transparency, and national security risks. 

The opposition stemmed partly from the fear that the bill lacked adequate protections against money laundering and did not fully address the risks posed by foreign issuers.

Some Democrats also highlighted potential conflicts of interest involving President Donald Trump, who has been publicly linked to cryptocurrency ventures. These concerns played a role in the initial attempt to block the bill earlier this month.

However, after continued discussions, several Democratic senators shifted their position, allowing the GENIUS Act to proceed to the Senate floor for broader debate and potential revision. 

Lawmakers from both parties now appear willing to work toward a compromise that balances innovation with financial safety.

Read also: Did the US Government Just Reject Stablecoins? Decoding the U.S. Senate’s GENIUS Act

The Road Ahead: Amendments and Final Vote

Although the GENIUS Act has passed its first major test, the bill is far from final. Senators are expected to propose several amendments over the coming days, particularly in areas related to anti-money laundering, oversight of foreign entities, and financial system stability.

If the amended bill wins majority support in the final vote, expected by the end of the week, it will move to the House of Representatives before it can be signed into law. 

If passed, the GENIUS Act would become the first federal legal framework specifically for stablecoins in the United States.

Given that stablecoins currently represent nearly $250 billion in market value, their regulation is seen as a crucial step in ensuring that the U.S. remains competitive and secure in the digital finance era.

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Frequently Asked Questions (FAQ)

What is the GENIUS Act?

The GENIUS Act is a U.S. Senate bill designed to regulate stablecoins. It introduces rules for asset backing, reserve disclosures, and audits for issuers.

What happened in the recent Senate vote?

The Senate voted 66–32 in favor of advancing the GENIUS Act. This procedural vote allows the bill to move forward for further debate and potential amendments.

Why was there Democratic opposition to the bill?

Several Democratic senators initially opposed the bill over concerns about consumer protection, anti-money laundering gaps, and risks from foreign stablecoin issuers.

What changes might be added to the bill?

Expected amendments include stronger measures related to financial system safety, more oversight for foreign entities, and clearer guidelines for consumer protections.

How will the GENIUS Act affect stablecoins?

If passed, the bill would require stablecoin issuers to fully back their tokens, undergo audits, and follow strict guidelines. It would also limit who can issue these tokens.

When will the final vote take place?

The final Senate vote on the GENIUS Act could take place as soon as the end of this week, depending on the pace of proposed amendments and ongoing debate.