The Senate Moves Forward with GENIUS Stablecoin Act – Coincu

The U.S. Senate has voted to proceed with the GENIUS Stablecoin Act, marking critical progress in the legislative process.

The bill’s advancement signifies increased bipartisan interest in establishing a robust stablecoin framework, potentially impacting U.S. Treasury operations.

Senate’s Bipartisan Support for GENIUS Act: Impact on Stablecoin Regulation

The GENIUS Act aims to create a clear regulatory framework for payment stablecoins in the United States. Initially introduced on May 1, 2025, the Act seeks to regulate stablecoin issuers by defining permitted issuers and specifying reserve requirements. The bill passed a cloture vote of 66-32 on May 19, 2025, enabling it to proceed for a full Senate debate and potential amendments. The shift in support, with Democratic senators such as Adam Schiff and Mark Warner now backing the bill, reflects altered political dynamics.

The passage of the cloture motion represents a significant development towards potential regulatory stability in cryptocurrency markets. Key elements include defining permitted issuers, requiring a one-to-one reserve backing, and excluding these stablecoins from being classified as securities. The regulatory landscape may shift as the Senate debates and amends the bill, potentially influencing stablecoin issuers’ operational structures.

Reactions within the Senate have been varied. Tim Scott, Chairman of the Senate Banking Committee, affirmed the relevance of the bill for America’s digital asset leadership. However, opposition exists, with Senator Elizabeth Warren advocating against it. David Sacks, the White House Cryptocurrency and AI Czar, emphasized the bill’s importance, stating it could unlock trillions for the U.S. Treasury.

“Tonight’s vote is a welcome and long-overdue step toward asserting U.S. leadership in digital assets. After playing politics, I’m glad many of my Democratic colleagues have returned to the table and are supporting a bipartisan product they helped shape. By moving forward on the GENIUS Act, we are one step closer to developing a regulatory framework that keeps innovation in America, protects consumers, and safeguards our national security.” — Tim Scott, Chairman, Senate Banking Committee

Legislative Journey of the GENIUS Act and Global Implications

Did you know?
The GENIUS Act is part of ongoing attempts to position the U.S. favorably within the rapidly evolving global cryptocurrency landscape, reflecting historical shifts toward regulatory frameworks observed in major financial sectors.

U.S. stablecoin regulation has been a long-standing issue, with previous measures stalling or facing significant opposition. Historically, bipartisan support in financial regulation has been rare, making the recent developments noteworthy. The Act’s progress reflects the increasing necessity for a regulatory framework that accommodates technological advances. Market analysts suggest that the GENIUS Act may set precedence for similar regulations in other regions, potentially influencing global digital currencies’ acceptance.

Market experts predict that the bill’s passage could stabilize the cryptocurrency market by providing legal clarity for stablecoin issuers. Historical trends indicate that such regulatory environments often lead to increased investor confidence and market growth. As the Act progresses, the implications for the broader cryptocurrency ecosystem and U.S. financial market policies remain significant.