Senate Advances Stablecoin Bill, Clearing the Way for Final Passage
The U.S. Senate advanced the GENIUS Act, a bill to regulate stablecoins—cryptocurrencies pegged to assets like the U.S. dollar—on May 20, 2025, with a 66-32 procedural vote, clearing the 60-vote threshold needed to move toward final passage. The legislation, which aims to establish a regulatory framework for stablecoin issuers, gained bipartisan support after negotiations addressed Democratic concerns, particularly around consumer protections and national security.
Key points:
• The bill passed a cloture vote, allowing further debate before a final vote, which could occur soon.
• Bipartisan negotiators, including Sens. Bill Hagerty (R-TN), Cynthia Lummis (R-WY), Mark Warner (D-VA), and Kirsten Gillibrand (D-NY), resolved sticking points with amendments.
• Democrats had previously blocked the bill on May 8, 2025, citing issues like anti-money laundering and foreign issuer provisions, partly due to concerns over President Trump’s crypto ventures.
• The GENIUS Act includes provisions for 1:1 reserve backing, monthly reserve disclosures, and restrictions on algorithmic stablecoins.
• The House is working on its own stablecoin legislation, and alignment will be needed before the bill reaches President Trump’s desk.
Despite progress, some Democrats, like Sen. Elizabeth Warren, remain critical, arguing the bill lacks sufficient consumer and national security protections. The final Senate vote is expected soon, though timing may be affected by the Memorial Day recess. If passed, the bill could boost institutional adoption and market clarity for stablecoins.
