In a significant step for cryptocurrency regulation in the United States, the Senate voted 66-32 on Monday evening to advance the long-debated GENIUS Act — legislation aimed at regulating stablecoins, a category of digital assets pegged to fiat currencies like the US dollar. 

A Bipartisan Path to Advancement

The GENIUS Act initially gained momentum in March after receiving bipartisan approval from the Senate Banking Committee. Senate Republican leadership brought the proposal to the floor earlier this month, seeking to capitalize on growing calls for regulatory clarity in the digital asset sector. The bill marks a rare bipartisan effort on major financial legislation and moves closer to becoming the country’s first comprehensive framework for stablecoin oversight.

However, Democratic support for the measure faltered in recent weeks, largely amid concerns surrounding former President Donald Trump’s and his family's involvement in cryptocurrency ventures. 

The partisan split prompted further negotiations, leading to a revised amendment over the weekend. This compromise version succeeded in winning over 16 Democratic senators, securing the necessary votes to advance the legislation via a key procedural motion.

Democratic Divisions Surface

Despite the concessions embedded in the amended bill, the legislation has sharply divided Democratic lawmakers. While several Democrats argued that an imperfect bill is preferable to no regulatory framework at all, others maintained firm opposition.

Sen. Elizabeth Warren, a prominent critic of the measure, reiterated her concerns ahead of the vote, saying,

“A bill that turbocharges the stablecoin market, while facilitating the President’s corruption and undermining national security, financial stability, and consumer protection is worse than no bill at all.”  

The Massachusetts senator was later seen in an intense exchange with Sen. Kirsten Gillibrand, one of the 16 Democrats who broke ranks to support the procedural motion. Warren further argued that, 

“while a strong stablecoin bill is the best possible outcome, this weak bill is worse than no bill at all.”

Senate Vote Breakdown

The procedural motion ultimately garnered backing from a coalition of Republicans and moderate Democrats. Among those supporting the motion were Democratic senators Kirsten Gillibrand (New York), Mark Warner (Virginia), Adam Schiff (California), and Jon Ossoff (Georgia), alongside most Republican lawmakers. Two GOP senators, Rand Paul (Kentucky) and Jerry Moran (Kansas), voted against advancing the bill.

Outlook for Final Passage

Monday’s successful cloture vote sets the stage for a potential final Senate vote on the GENIUS Act, which, if passed, would mark the chamber’s first comprehensive legislation addressing cryptocurrency regulations. While the bill has cleared a critical hurdle, deep partisan divisions remain, and its prospects in the House of Representatives remain uncertain.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice