The Senate's 68-30 vote limited the debate time for the stablecoin bill, paving the way for its passage next weekend.
The U.S. Senate yesterday took an important step in the stablecoin legislative process as 68 votes in favor and 30 against approved the procedural step for the GENIUS Bill. This procedural vote limits the subsequent debate time and suggests that the current version is likely to be the final version of the bill, marking a high probability of passage next weekend.
The voting results showed significant bipartisan support with 18 Democratic Senators voting in favor and only 2 Republican Senators opposing. Senate Banking Committee Chairman Tim Scott remarked that this is a victory for innovation, as this legal framework will help startups confidently build right in the U.S. instead of having to go abroad.
However, the effort to attach the unrelated Credit Card Competition Act led to a shortening of the amendment process and blocked some proposals from the Democratic Party related to former President Trump's cryptocurrency activities. This created tension within the Democratic Party, especially among those wanting stricter regulations.
Stablecoin as a national strategy
Senator Bill Hagerty, the main sponsor of the bill, emphasized that stablecoins are seen as a strategic tool to boost demand for U.S. Treasury bonds. He noted that a recent report predicts that if there is a proper legal framework, stablecoin issuers could become the largest group of Treasury bond investors by the end of this decade, strengthening the national fiscal position and reinforcing the role of the USD as the global reserve currency.
However, some studies suggest that the actual impact may be more complex. The Bank for International Settlements published data showing that stablecoins have a certain influence on short-term T-bill interest rates but at a lower level than expected. The Financial Stability Board also warned that stablecoins could pose systemic risks if not tightly regulated.
Despite the bipartisan support, a faction of the Democratic Party led by Senator Elizabeth Warren remains strongly opposed. She objected to the Democratic-proposed amendments not being put to a vote, including stricter regulations on public officials' conflicts of interest and restrictions on stablecoins issued by Big Tech. Warren also sent a letter to Meta questioning whether the company is quietly reviving its stablecoin issuance plan, which previously triggered backlash against the Libra project in 2019.