Senate Votes on GENIUS Act to Regulate $246 Billion Stablecoin Market

The U.S. Senate is scheduled to vote on the GENIUS Act on May 19, 2025. This bipartisan bill, co-sponsored by Senator Bill Hagerty and Senator Kirsten Gillibrand, seeks to establish the first regulatory framework for payment stablecoins in the United States. The bill has faced a challenging path, with the initial vote on May 8 falling short of the 60-vote threshold required for cloture. Only 48 senators voted in favor, while 49 opposed, primarily due to concerns from Democrats regarding weak anti-money laundering measures, lack of oversight on foreign-issued stablecoins, and insufficient consumer protection mechanisms.

In response to these concerns, bipartisan negotiations have led to key amendments. The revised version of the GENIUS Act includes enhanced customer safeguards, clearer bankruptcy protection for stablecoin holders, and ethical restrictions barring Big Tech firms and certain individuals from issuing stablecoins. These additions aim to address the concerns of cautious lawmakers and ensure the bill aligns with investor protection and national security goals.

The timing of this vote is crucial as the global stablecoin market is now worth over $246 billion, with Tether’s USDT and Circle’s USDC leading the market. These tokens, pegged 1:1 with fiat currency, are essential for traders, institutions, and fintech innovators. The use cases for stablecoins are growing rapidly, with partnerships like Mastercard’s collaboration with MoonPay enabling stablecoin payments for millions of merchants worldwide. This further validates the need for regulation in the stablecoin market.

Senator Hagerty argues that the passage of the GENIUS Act would cement the U.S. dollar’s dominance in the digital economy, increase demand for U.S. Treasuries, and encourage fintech innovation to stay within U.S. borders. The bill’s success hinges on bipartisan cooperation, as the Senate requires 60 votes to pass. With no party holding a filibuster-proof majority, the bill’s fate rests on the support of 9–11 moderate Democrats or Republicans. If passed, the GENIUS Act could mark a historic regulatory milestone for the crypto industry, providing a framework that balances innovation with consumer protection.

The GENIUS Act has faced opposition from Democrats who raised concerns about the bill potentially benefiting meme coins and crypto projects associated with certain individuals. Following the initial setback, the Senate resumed its review of the bill, with both parties working to finalize the details. On May 14, industry leaders, including Coinbase CEO Brian Armstrong, gathered in Washington, D.C., to lobby senators in support of the bill, emphasizing the urgency of the matter.

The revised GENIUS Act includes amendments that address anti-money laundering gaps and bars Big Tech companies from issuing tokens. This move is seen as a significant step towards ensuring that stablecoins are used responsibly and do not fall into the wrong hands. The bill specifically names certain individuals, highlighting the broad scope of its regulatory ambitions. Industry insiders have expressed that without the passage of a stablecoin bill, it will be challenging to push through a broader overhaul of digital coin regulations. The GENIUS Act, if passed, could set a precedent for future regulatory efforts in the crypto space, providing a framework that balances innovation with consumer protection.

As the Senate prepares for the formal voting stage on May 19, both parties appear to have reached a consensus on the need for stablecoin regulation. The outcome of this vote will be closely watched by the crypto industry and regulators alike, as it could shape the future of stablecoins in the U.S. and potentially influence global regulatory standards. The passage of the GENIUS Act would mark a significant milestone in the ongoing efforts to bring stability and oversight to the rapidly evolving world of cryptocurrencies.