Senate Passes Cloture Vote on GENIUS Act 66-32

The US Senate has passed a critical cloture vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The bill secured 66 votes in favor and 32 votes against, marking a significant procedural victory. However, the bill has not yet become law and will proceed to the Senate floor for debate and possible amendments.

The highlight of the cloture vote was the shift in support from sixteen Democrats, who changed their votes to back the bill. This significant change in stance brought the GENIUS Act closer to potential passage. The list of Democrats who flipped their votes includes Alsobrooks, Hassan, Warner, Schiff, Padilla, Slotkin, Blunt-Rochester, Cortez Masto, Fetterman, Gallego, Gillibrand, Heinrich, Lujan, Ossoff, Rosen, and Booker.

According to a reporter, the bill is expected to move to the Senate by tonight or Wednesday. However, it remains unclear whether a final passage vote will occur before Memorial Day next Monday, as initially hoped by GOP leaders.

Faryar Shirzad, Chief Policy Officer at a major cryptocurrency exchange, described the vote as a “historic early win.” He emphasized that while many steps remain, this move brings stablecoin legislation closer to becoming a reality. Shirzad noted that crypto has shown itself to be a significant bipartisan issue in Congress.

Senator Bill Hagerty, the bill’s sponsor, expressed optimism about the GENIUS Act. He predicted that the legislation could drive demand for US Treasury bonds by over $1 trillion, potentially bolstering the country’s financial system. Hagerty also stated that the GENIUS Act would establish a digital payment framework with the fastest rails possible, ensuring US dollar dominance.

However, the legislation has also drawn sharp criticism. Senator Elizabeth Warren, Ranking Member of the Senate Banking Committee, warned of systemic risks. She cited a Nobel Prize-winning economist who remarked that the GENIUS Act lacks fundamental provisions to preserve financial stability and would increase systemic risk stemming from stablecoin runs and inadequate guardrails on foreign issuers.

A crypto commentator also offered a scathing critique, arguing that the GENIUS Act would force stablecoins into the traditional banking system. He claimed it would ban decentralized stablecoins, limit issuance to licensed banks and partners, and offer no interest to holders, effectively stifling innovation in the decentralized finance space.

While the cloture vote was a procedural win, it revealed deep divisions. For now, the bill’s final passage remains uncertain. As the Senate prepares for the decisive vote, the debate over stablecoin regulation continues to intensify, with far-reaching implications for the future of digital finance in the US.