GENIUS Act Passes Crucial Senate Vote, 60-29

The Republican-sponsored GENIUS Act, which aims to establish regulatory guidelines for stablecoins, has successfully passed a crucial procedural vote in the US Senate. The legislation is now set to proceed to a full floor vote, following a 60-29 vote in favor of cloture on Monday evening. This development comes after an earlier cloture vote on the GENIUS Act failed with a 48-49 vote earlier this month.

Senators have been engaged in negotiations over the bill's elements for several weeks. The latest draft of the legislation includes significant updates. Foreign stablecoin issuers not predominantly engaged in financial services activities must now be unanimously approved by the Stablecoin Certification Review Committee. Additionally, the new draft clarifies that stablecoin issuers are permitted to share consumer information only when necessary to comply with existing laws or legal requirements.

Despite these revisions, some Democrats remain dissatisfied with the new language, which has not been made public. Senator Elizabeth Warren, a longstanding critic of crypto-friendly legislation, expressed her discontent ahead of the vote, stating that the GENIUS Act, in its current form, is “worse than no bill at all.” She also criticized the timing of the vote, which coincides with President Trump's planned events for top investors in his memecoin.

While a floor vote on the GENIUS Act has not yet been scheduled, it could be added to the calendar as early as this week. The Senate is poised to redo a crucial procedural vote on the GENIUS Act, a bipartisan bill introduced by Senator Bill Hagerty. This legislation aims to establish the first comprehensive federal framework for stablecoins, a move that has garnered cautious optimism from insiders. Following a week of intense negotiations and late-night discussions between Senate Republicans and Democrats, the bill's text has been revised, and momentum is building.

Several Senate staffers and industry leaders have expressed confidence that tonight’s procedural vote will clear the way for the bill’s passage, ideally before Memorial Day. The updated bill includes significant changes, particularly targeting the role of Big Tech in the stablecoin market. New provisions would prohibit non-financial public companies from issuing stablecoins, a measure designed to limit their growing influence in the digital currency space. However, it remains uncertain whether these changes will be sufficient to win over Senator Josh Hawley, who previously voted against the bill due to concerns about Big Tech ownership. Senator Rand Paul has also not indicated how he plans to vote this time around.

Another contentious issue is the bill's current text, which allows President Donald Trump’s family to profit from stablecoin-related business ventures. This has been a sticking point for Senator Elizabeth Warren and many other Democrats, who argue that passing the GENIUS Act would make it easier for the Trump family to "line their pockets." Despite these concerns, Senator Hagerty remains optimistic, stating that the Senate is on the verge of making history by passing the GENIUS Act.

To advance past tonight’s cloture vote, the bill will need at least 60 votes in favor. Senator Mark Warner, who was a vocal holdout during the initial cloture vote two weeks ago, now plans to support the revised version and is urging his Democratic colleagues to do the same. This shift in support is seen as a positive sign for the bill's prospects, although the final outcome remains uncertain. The Senate is scheduled to vote on cloture for the GENIUS Act at 5:30 PM ET, marking a key step toward potential passage.