The GENIUS Act, an important draft on stablecoin regulation in the U.S. Senate, has just passed the cloture vote on Monday, just less than two weeks after its previous failure. This surprising move lays the groundwork for a significant advancement in the crypto industry, but the future remains uncertain.
From Failure to Hope: A Breakthrough Transformation
Just less than two weeks ago, #GENIUSAct failed in the cloture vote – the process to end debate and bring the draft to a full vote. At that time, opposition from Democratic crypto-supporting lawmakers was influenced by the controversy surrounding conflicts of interest related to President Donald Trump. However, tonight, the situation has changed as key Democratic lawmakers such as Ruben Gallego (Arizona), Mark Warner (Virginia), Lisa Blunt Rochester (Pennsylvania), Kirsten Gillibrand (New York), and Angela Alsobrooks (Maryland) – who had previously opposed – supported the draft. Alsobrooks and Gillibrand were initial co-sponsors.
With over 60 votes in favor, the GENIUS Act is now close to a full vote that could occur as soon as tomorrow, according to Senate sources provided to Decrypt. If everything goes smoothly, the result will likely be similar to the cloture vote tonight. After the Senate, the draft needs to be passed by the House of Representatives before reaching the President #TRUMP for signing into law. If successful, the GENIUS Act will establish the first legal framework for the issuance of stablecoins in the U.S.
Stablecoins, crypto tokens pegged to the USD, allow users to trade digital assets without direct exposure to fiat currency while supporting cross-border payments and money transfers. Once the law is passed, the once-cautious Wall Street titans may pour billions, even trillions of USD into the crypto industry.
Recovery Momentum: Negotiation and Pressure
What helped the GENIUS Act regain momentum? Last week, Democratic lawmakers negotiated a new draft, claiming to have made significant concessions from Republicans regarding conflicts of interest, national security, and Big Tech limitations. The new draft prohibits senior officials in the executive branch from issuing stablecoins but allows the President and Vice President to avoid concerns about Trump. Additionally, the new language restricts tech corporations from issuing stablecoins if they collect and sell user financial data—unless agreed upon through terms of service.
Pressure from the industry also plays a crucial role. Coinbase, with significant influence in Washington, had previously hesitated to support individual stablecoin legislation in favor of a more comprehensive bill, causing dissatisfaction within the crypto policy community. Recently, as the entire crypto legislative agenda faced risk, CEO Brian Armstrong called for the immediate passage of the GENIUS Act. Coinbase's Stand With Crypto organization warned it would downgrade politicians who oppose, while also sending notifications through an app urging users to contact lawmakers. This pressure is supported by 300 million USD from major crypto companies for a pro-crypto super PAC last year, with tens of millions already raised for the 2026 midterm elections.
Impact and Prospects
With crypto fund inflows reaching 3.4 billion USD last week and an expected accumulation of 330 billion USD into Bitcoin by 2029, along with Ethereum (2,600 USD) growth, the GENIUS Act could propel stablecoins to become a key driver. In the next 1-2 years, if the law is enacted, the crypto industry could welcome a massive influx of institutional capital, increasing legitimacy and practical applications. However, the effectiveness of enforcing the new regulations, especially regarding conflicts of interest and Big Tech, needs to be closely monitored.
Conclusion: GENIUS Act – A Breakthrough or a Challenge?
The GENIUS Act passed the cloture vote with support from key Democratic lawmakers, opening the door for passage in the coming days. Although there are still debates about regulatory effectiveness, this is a positive signal for stablecoins and the entire crypto industry. With the potential for significant capital attraction, this law could shape the future, but success depends on clarity and enforcement.
Risk Warning: Cryptocurrency investments carry high risks due to price volatility and legal uncertainties. Please consider carefully before participating.
