After months of posturing, the U.S. Senate has passed the GENIUS Act, a stablecoin regulation bill that puts legal framing around dollar-pegged crypto assets. The vote was 68–30, with 18 Democrats siding with Republicans. Only Rand Paul and Josh Hawley voted no on the Republican side. The bill moves to the House next, where additional provisions may be attached. GENIUS stands for “Guiding and Establishing National Innovation for U.S. Stablecoins,” but the name is irrelevant. What matters is that stablecoins will now be under formal federal regulation for the first time, at least if the House does not derail the process with a broader crypto market structure package.
The core of the bill sets consumer protection guidelines and imposes oversight on stablecoin issuers. It includes a clause that bans members of Congress and their families from profiting off stablecoins, but notably does not extend this restriction to the president or the executive branch. This is not an oversight. Donald Trump’s financial disclosures show he made over $57 million in 2024 from a stablecoin project linked to World Liberty Financial. His private dinner with backers of a Trump-themed meme coin only underlined how far his administration is entangled in crypto. The Treasury, under Secretary Scott Bessent, has fully endorsed the bill, projecting the stablecoin market could reach $3.7 trillion by 2030. Coinbase CEO Brian Armstrong also supported the measure and has been publicly aligned with Trump in recent months.
Despite its bipartisan framing, most Democrats voted against the bill. Senators like Elizabeth Warren cited unresolved conflict-of-interest issues, particularly regarding the president’s direct stake in crypto ventures. Warren also warned that the bill could allow major tech companies to launch their own stablecoins without clear limitations, opening new channels of influence and control. Earlier in May, several Democrats had reversed their support, blocking the bill temporarily and forcing fresh negotiations. The final version passed after these revisions, with co-sponsor Angela Alsobrooks calling it a significant improvement. Her framing was measured — not celebratory, just functional.
The GENIUS Act is now positioned as the second major bipartisan bill passed by the Senate this year, after January’s Laken Riley Act on immigration. It reflects the growing presence of crypto money in U.S. politics, especially after a 2024 election cycle where crypto lobbying reached historic highs. The bill’s passage also reveals a shift in Washington’s stance toward digital assets, now viewed less as a regulatory risk and more as an institutional asset class. Still, key questions remain, particularly around the president’s exemption from the same financial restrictions imposed on Congress. Trump wants the bill on his desk before the August recess. He might get it.
