Senate Advances GENIUS Act to Regulate Stablecoins

GENIUS Act Advances in Senate, Signaling Shift in Stablecoin Policy

In a notable twist weeks after the Democrats blocked it, the U.S.Senate advanced the highly anticipated GENIUS Act, a landmark bill that aims to set the first real rules for stablecoins, digital token tied to fiat currencies like U.S. dollar. Monday’s procedural vote passes 66-32, with sixteen Democrats breaking ranks to side with Senate Republicans. Meanwhile, two Republican senators, Rand Paul of Kentucky and Jerry Moran of Kansas, voted against it.

What is the GENIUS Act?

Introduced in the Senate on February 4, 2025, by Senator Bill Hagerty and a group of bipartisan lawmakers, the bill is designed to bring some much needed structure to the fast-moving world of digital currency. It seeks to regulate stablecoins, a specific kind of digital asset that’s pegged to a fixed amount of money, like the U.S. dollar, in a way that protects both consumers and the border economy, without putting the brakes on innovation.

GENIUS Act Clears Key Hurdles With 66 Votes

The GENIUS Act needed at least 60 votes to keep moving forward, and it cleared that bar with room to spare. Republicans currently hold a slim three-seat majority in the Senate. But it was Democratic support that ultimately nudged the bill over the line, setting up the next steps for final passage.

Late-Night Talks Pave Way for Democratic Support

What changed in just two weeks? A bipartisan group of senators, Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Mark WaGillibrand (D-N.Y.), Angela Alsobrooks (D-Md.), and Ruben Gallego (D-Ariz.) struck a deal over the weekend. The agreement focused on adding new consumer protections and reining in Big Tech’s ability to issue stablecoins.

New Safeguards Address Democrat Concerns

An amendment born from those talks include stronger ethics rules and added safeguards for consumers. It also temporarily applies those ethics standards to high-profile figures like Elon Musk and David Sacks. Importantly, the changes aim to ensure transparency without directly targeting any specific individuals or companies.

Democrats Commit to GENIUS Act Support

According to sources close to negotiations, the Democrats who helped shape the amendment are committed to supporting the GENIUS Act even if the amendment ultimately does not make it into the final bill. That move signals just how urgent they see the need for digital asset regulations, even amid unresolved concerns.

Republicans Play It Cool on Amendment Support

So far, Senate Republicans have not publicly committed to backing the new amendment, but the updated consumer and ethics provisions may help draw even more Democrats into the yes column.

Two Weeks Ago: A Different Story

The GENIUS Act faced a major setback just two weeks ago when Senate Democrats, along with Republicans Rand Paul and Josh Hawley, blocked the bill. At the time, critics demanded tougher national security and anti-money laundering rules.

Senator Thune Blasts Delays: “Why Wait 11 Days?”

Senate Majority Leader John Thune voiced frustration over the delay. “It’s really hard to understand why we needed to wait an additional 11 days for Democrats to finally agree to move,” he said. Thune added that the Senate likely won’t vote on final passage until after the Memorial Day recess.

Trump’s Meme Coin Dinner Adds Fuels to Crypto Fire

Fueling some of the hesitation among Democrats are recent headlines involving the Trump’s family crypto ties. Reports of the President Donald Trump hosting a dinner for top holders of his meme coin, linked to World Liberty Financial, raised fresh concerns. While meme coins differ from stable coins, the political optics have added tension to the crypto debate.

What’s Next for the GENIUS Act?

With the procedural vote out of the way, all eyes now turn to whether the GENIUS Act, complete with or without its newest amendment, can make it to the finish line. As stablecoins continue growing in popularity, the Senate’s action may mark a historic step towards clearer digital asset regulation in the U.S.