The US is continuing with its plans to become a global leader in crypto following a Senate vote to advance the GENIUS Act, which could see the regulation of stablecoins.
A 66-32 vote in favour of advancing the GENIUS Act was finalised on May 19 after initially being blocked. Democrat figures voted against advancing the stablecoin legislation on May 8 over concerns regarding consumer protection amongst other fears.
Despite lingering Democratic concerns about the GENIUS Act’s design, enough politicians from the party have agreed to advance the bill. This marks a significant step towards bringing stablecoins into the mainstream through regulatory backing.
The Act’s latest draft proposes new provisions for US stablecoin issuers, aiming to establish greater regulatory clarity and transparency. It particularly focuses on federal and state oversight for issuers that meet certain market capitalisation thresholds.
After passing the Senate Banking Committee in March 2025 with bipartisan support, the GENIUS Act was initially expected to proceed smoothly to the Senate vote. However, a segment of Democrats subsequently blocked this vote.
Democratic Senators, Lisa Blunt, Ruben Gallego, Andy Kim and Mark Warner – who were among nine party representatives supporting the Bill in March – later signed a statement signalling their intention to oppose the bill during its first procedural vote.
Their statement highlighted concerns about “adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements”.
Despite ultimately gaining Democratic support in the Senate in Monday’s vote, Senate Majority Leader John Thune criticised the earlier Democratic rejection, stating the bill “reflects the bipartisan consensus” on the need for stablecoin regulation and “had an open and bipartisan process since the very beginning”.
Why is the GENIUS Act so crucial?
The GENIUS Act, introduced in February 2025 as part of President Donald Trump’s first 100 days, seeks to provide a comprehensive regulatory framework for the issuance, handling and payment of stablecoins.
Section 5 of the Act outlines that only permitted payment stablecoin issuers are legally authorised to provide stablecoins as a payment method. Stablecoin issuers, such as Tether and Circle, would be required to be regulated as an insured depository institution, and those issuers with a market capitalisation of $10bn or more will be subject to federal regulation by relevant banking regulators.
Democratic Senator Kristen Gillibrand, a co-sponsor of the GENIUS Act, stated “stablecoins are already playing an important role in the global economy, and it is essential that the US enact legislation that protects consumers, while also enabling responsible innovations”.
Although concerns around the establishment of the stablecoin bill have centered around consumer fears and lacking regulatory oversight over payment functions, one Democrat Senator has cited his concerns around the Trump family’s usage of crypto.
Senator Mark Warner, outlined his opinions on the stablecoin legislation, as well as his “very real concerns” regarding the Trump family’s usage of crypto, which has seen the issuance of the $TRUMP meme coin.
“Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight, hide shady financial dealings, and personally profit at the expense of everyday Americans,” said Warner.
“We have a duty to shine a light on these abuses and stop Donald Trump from exploiting emerging technologies to enrich himself, dodge accountability, and weaken the safeguards that protect American consumers and the rule of law.
“Innovation in this space is happening, with or without us. We have a responsibility to ensure it happens safely, transparently, and in a way that advances US economic and national security interests. The GENIUS Act will help get us started.”
As per US law, representatives from both the House and Senate will work together to finalise the formal passing onto the President to be reviewed.
Trump, an avid supporter of crypto and digital asset innovation and growth, has 10 days to sign or veto the bill after it is formally introduced to him. As he has made crypto growth a major part of his first 100 days as President, it seems likely that the US will finally see a piece of digital asset legislation get over the line.
