The U.S. Senate has officially advanced the GENIUS Act, a bill designed to regulate stablecoins. The 66-32 vote showed rare bipartisan support, marking a major shift in crypto legislation. This act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, is now set for a full debate and vote on the Senate floor. If passed, it will move on to the House, where it could merge with the STABLE Act for a unified framework. Senator Bill Hagerty, who introduced the bill, aims to finalize it by Memorial Day.
Democratic holdouts like Mark Warner and Adam Schiff flipped their stance after changes addressed ethical concerns. They say the U.S. can’t afford to delay crypto regulation while other nations set their own rules. The GENIUS Act is being pitched as a win for innovation and the dollar’s global strength.
GENIUS Act Sets Rules for Stablecoins
The bill lays out a clear structure for stablecoin regulation. It requires issuers to hold one-to-one reserves in cash or U.S. Treasury securities. Only licensed firms will be allowed to issue these tokens. Large issuers—those with more than $10 billion in circulation—will face federal oversight.
The act also bans algorithmic stablecoins and includes strong anti-money laundering (AML) and know-your-customer (KYC) protocols. These rules aim to prevent fraud and increase trust in digital assets. Supporters say this will finally bring clarity to the $250 billion stablecoin market. Industry leaders, including executives from Coinbase and Ripple, have welcomed the bill’s standards.
Political Firestorm Over Trump’s Crypto Empire
The GENIUS Act’s progress hasn’t been smooth. At the center of the drama is President Donald Trump’s growing crypto presence. Critics, especially Senator Elizabeth Warren, say the bill could boost Trump’s personal stablecoin project, USD1. They worry it allows the former president to profit from a law he could influence.
Warren called the bill a gift to “crypto corruption,” pointing to the Trump family’s many blockchain ventures. These include a fast-growing stablecoin and a crypto mining firm eyeing a public listing. Still, most lawmakers who had concerns now say the industry’s rapid growth makes action unavoidable. They argue that regulation is better than letting the space grow unchecked.
What Happens After the Senate?
If the GENIUS Act passes the Senate, it heads to the House of Representatives. The House has its own version of a stablecoin bill—the STABLE Act. Analysts expect lawmakers to reconcile the two bills, creating a single set of rules. This would give the U.S. its first full legal framework for stablecoins.
Supporters from both parties hope for a quick resolution. The goal is to finish the process and send the bill to President Trump for final approval. While he stands to gain from the law, the GENIUS Act would apply to all players in the industry equally. It’s about rules, not rewards.
Why the GENIUS Act Matters
The GENIUS Act is a turning point for U.S. crypto policy. For years, stablecoins operated in a legal gray zone. Now, there’s a push to bring them under federal oversight. This helps protect investors, stop illegal activity, and keep the dollar strong in digital markets.
The U.S. is joining countries like Brazil and the EU in setting clear crypto rules. This could attract more investment and foster safer innovation. For the crypto industry, the GENIUS Act could be the law that finally brings stability to stablecoins. Whether it passes the House remains to be seen, but the Senate’s support is a big first step.
