Senate Nears Vote on GENIUS Act for National Stablecoin Regulation

The Senate is on the brink of a crucial vote on the GENIUS Act, a landmark legislation designed to create the first national regulatory framework for stablecoins in the United States. The bill, which has garnered bipartisan support, is set to undergo a key vote following the filing of cloture motions by Senate Majority Whip John Thune. This procedural move initiates a 30-hour countdown for structured debate, during which senators can raise objections or propose procedural delays. If the measure clears cloture, the Senate will proceed to final votes, potentially as early as Wednesday.

The GENIUS Act, short for “Guiding and Establishing National Innovation for US Stablecoins of 2025,” has been shaped through months of negotiation involving lawmakers from both parties and stakeholders from the finance, technology, and banking sectors. The bill introduces a comprehensive regulatory structure for stablecoins, which are typically pegged to the U.S. dollar. This framework aims to balance innovation support with national financial oversight, addressing concerns from both fintech firms and regulators.

A significant amendment, Amendment 2307, offered by Senator Hagerty, introduces key revisions to the original bill. This amendment creates separate oversight pathways based on an issuer’s stablecoin market value. Issuers with stablecoins valued under $10 billion may opt into a state-based regulatory regime, while those exceeding this threshold must comply with a federal regulatory framework. This split aims to provide flexibility for smaller issuers while ensuring robust oversight for larger entities.

The amendment also addresses reserve standards and transparency requirements. Stablecoins must hold 1:1 reserves in U.S. dollars or liquid short-term assets, and issuers must submit monthly public attestations to ensure operational integrity. Additionally, the bill prohibits stablecoins from offering interest, aiming to limit competition with bank deposits. This clause was included at the request of banking institutions to preserve traditional banking roles within the monetary system.

Furthermore, the bill restricts foreign stablecoins from having equivalent regulatory frameworks, citing national security and financial stability as justifications. This provision strengthens domestic oversight over digital asset flows. The amendment also bars the executive branch from launching or promoting a national stablecoin, ensuring that Congress retains full authority over any digital dollar initiative. This measure received bipartisan support to ensure checks on monetary power.

If the cloture vote reaches 60 votes, the Senate will proceed to final votes on both the amendment and the bill. Due to earlier bipartisan progress, lawmakers anticipate limited opposition, and the passage is likely before the 30-hour debate clock expires. Following the Senate vote, the GENIUS Act will move to the House of Representatives, where lawmakers must align it with the STABLE Act, currently under committee review. The final reconciliation will occur at the conference before it reaches the president’s desk.