US SENATE ADVANCES LANDMARK STABLECOIN BILL WITH BIPARTISAN SUPPORT
- The U.S. Senate just cleared the path for stablecoin regulation with a 66-32 vote in favor of advancing the GENIUS Act.
What Happened:
- Senators voted to invoke cloture on the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins).
- That means the bill now heads to formal debate, amendments, and then a final vote.
Who Backed It:
- 16 Democrats joined Republicans in supporting the bill — a major shift from last week when no Democrats backed it.
- Big names like Sens. Gallego, Cortez Masto, Fetterman, Schiff, and Warner voted “yes.”
- Senate Minority Leader Chuck Schumer and Sen. Elizabeth Warren voted “no.”
What's in the Bill:
- Requires stablecoins to be 100% backed by U.S. dollars or other liquid assets.
- Annual audits for issuers with a market cap above $50B.
- Tougher scrutiny on foreign issuers.
- Designed to protect consumers while boosting U.S. dollar dominance in digital payments.
Why It Matters:
- Sen. Bill Hagerty, the bill’s lead sponsor, says this law could skyrocket U.S. leadership in digital finance.
- Supporters say it will unlock over $1 trillion in demand for U.S. treasuries.
- Ji Kim from the Crypto Council calls it a “historic” moment after months of negotiation.
The Pushback:
- Sen. Elizabeth Warren slammed the bill for not going far enough on Trump’s crypto ties and criticized the USD1 stablecoin.
- Critics remain uneasy about corporate issuance and the foreign influence loopholes.