#GENIUSAct
GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) - May 2025
Senate Progress
On May 19, 2025, the Senate voted 66–32 to invoke cloture on the GENIUS Act, overcoming previous Democratic opposition. This procedural vote allows the bill to proceed to full debate and potential amendments on the Senate floor.
Key Provisions of the GENIUS Act
- Full Asset Backing: Stablecoins must be fully backed by reserves.
- Licensing Requirements: Only licensed entities can issue stablecoins.
- Algorithmic Stablecoin Ban: Prohibits algorithmic stablecoins.
- Consumer Protections: Mandates regular audits and AML compliance.
- Big Tech Restrictions: Limits big tech involvement in stablecoin issuance.
- Yield-Bearing Stablecoin Ban: Bans yield-bearing stablecoins, even from foreign issuers.
- Enhanced Oversight: Grants Treasury Department enforcement authority.
Political Dynamics
The bill initially faced resistance due to former President Trump's crypto activities, including the USD1 stablecoin. Senator Elizabeth Warren opposed the bill over concerns about 'crypto corruption.' Following negotiations, 16 Democrats supported the bill after enhanced consumer protections and tech firm restrictions were included.
Next Steps
Senate Majority Leader John Thune announced an open amendment process. The bill is expected to be finalized and potentially signed into law by President Trump before the August recess.
https://youtu.be/3QS9QNbJRcs?si=fmlGf92iZ4aftmp7