Senate Advances GENIUS Act for Stablecoin Regulation 66-32

The Senate has made significant progress in advancing stablecoin regulation with a bipartisan vote of 66-32 to move forward the GENIUS Act. This legislation aims to establish the first federal regulatory framework for stablecoins, which are digital currencies pegged to fiat currencies like the US dollar. The vote to advance the bill came after a week of intense negotiations, with 16 Senate Democrats joining Republicans to overcome a previous deadlock that had stalled the legislation two weeks prior.

The critical procedural vote, known as cloture, was necessary to move the bill forward. However, a final vote on passage is not expected until after Memorial Day. The GENIUS Act is designed to address issues of consumer protection, financial stability, and transparency for stablecoin issuers. The bill includes new provisions on ethics standards for tech company leaders, which could impact high-profile figures. These changes helped to sway Democratic support after earlier resistance over national security and anti-money laundering concerns.

Key senators, including Bill Hagerty, Cynthia Lummis, Mark Warner, Kirsten Gillibrand, Angela Alsobrooks, and Ruben Gallego, reached an agreement on amendments to the bill. These amendments added safeguards for consumers and restricted tech companies from issuing stablecoins, helping to unlock support from Democrats who initially blocked the bill. Despite bipartisan backing, some Republicans, including Senators Rand Paul and Jerry Moran, voted against advancing the legislation.

The bill’s journey has been complicated by previous opposition. Some Republicans, including Paul and Josh Hawley, have called for more robust provisions on national security and anti-money laundering measures. Senate Majority Leader John Thune criticized the delay, pointing out that the underlying bill had not changed since it was first blocked. The GENIUS Act includes provisions to prevent conflicts of interest among public officials, prohibiting any member of Congress or senior executive branch official from issuing a payment stablecoin product while in office. However, the bill does not restrict crypto ventures by private citizens.

While the road to final passage remains uncertain, the bill’s advancement signals growing momentum for stablecoin regulation in the US. The GENIUS Act’s introduction could pave the way for clearer rules governing the growing crypto industry, particularly for stablecoin issuers, who have long operated in regulatory uncertainty. The legislation’s next phase will involve final negotiations and potential adjustments before the Senate takes up the matter again after the Memorial Day break.