As of May 20, 2025, the U.S. Senate has taken a significant step forward with the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act), a landmark bill aimed at regulating the stablecoin market, which is currently valued at nearly $250 billion.
๐๏ธ Senate Advances GENIUS Act
On May 19, the Senate passed a crucial cloture vote with a 66โ32 majority, overcoming previous opposition and setting the stage for a full floor vote. This procedural victory indicates strong bipartisan support and suggests that final passage in the Senate is likely imminent .
๐ Key Provisions of the GENIUS Act
The GENIUS Act proposes to:
Establish Federal Oversight: Create a clear regulatory framework for stablecoin issuers.
Ensure Full Asset Backing: Mandate that stablecoins are fully backed by assets.
Implement Regular Audits: Require consistent security audits for stablecoin operations.
Restrict Algorithmic Stablecoins: Limit the use of algorithmic stablecoins.
Authorize Licensed Issuers Only: Permit only licensed entities to issue stablecoins.
These measures aim to enhance consumer protection, prevent financial misuse, and encourage responsible innovation within the U.S. digital asset ecosystem .
๐งญ Political Dynamics
The bill's progress had previously stalled due to concerns over potential conflicts of interest involving former President Donald Trump's crypto ventures. However, recent amendments addressing issues like national security and big tech influence have garnered renewed support from key Democratic senators, including Mark Warner and Kirsten Gillibrand .
๐ธ Visual Update
This image captures the moment the Senate advanced the GENIUS Act, signaling a pivotal development in U.S. crypto regulation.
For a more in-depth analysis, you can watch the following news segment discussing the implications of the GENIUS Act:
