In a significant development for crypto regulation in the United States, the Senate has advanced the Guiding and Establishing National Innovation for US Stablecoins Act, more commonly known as the GENIUS Act. The bill, which aims to establish a comprehensive framework for stablecoin oversight, cleared a key procedural hurdle on May 19, passing a cloture vote with a 66-32 margin. This sets the stage for formal debate on the Senate floor.
The bipartisan movement behind the bill comes after earlier resistance, primarily from Democratic lawmakers, who raised concerns about potential political entanglements and insufficient anti-money laundering provisions. The bill’s progress had been stalled earlier this month, with some Democrats wary of the growing influence of former President Donald Trump’s crypto initiatives.
However, the political tides seem to have shifted. Senators Mark Warner, Adam Schiff, and Ruben Gallego — all Democrats who had previously opposed the measure — voted in favor this time, allowing the legislation to move forward. Their support suggests a growing consensus in Washington that the U.S. can no longer afford to delay establishing clear regulatory guardrails for digital assets, especially as the stablecoin market swells in both size and systemic importance.
“We cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay,” said Senator Warner in a post-vote statement. He emphasized that the U.S. must take an active role in shaping the future of digital financial infrastructure or risk ceding leadership to less transparent global actors. “If American lawmakers don’t shape it, others will — and not in ways that serve our interests or democratic values.”
Meanwhile, Senator Elizabeth Warren, a longtime critic of the crypto sector, voiced strong opposition to the bill. She argued that the GENIUS Act fails to address what she described as Trump’s “crypto corruption.” Warren highlighted the former president’s expanding footprint in the industry — from launching a stablecoin to crypto exchanges and mining ventures — and accused him and his family of profiting at the expense of public interest.
“Trump and his family have already pocketed hundreds of millions of dollars from his crypto ventures, and they stand to make hundreds of millions more from his stablecoin, USD1, if this bill passes,” Warren warned.
The GENIUS Act was introduced in February by Senator Bill Hagerty, a Republican, and has since gained attention for its attempt to create robust, transparent standards in the $250 billion stablecoin market — currently dominated by Tether (USDT) and Circle’s USDC.
Under the proposed law, all stablecoins would need to be:
- Fully asset-backed,
- Subject to regular third-party audits, and
- Issued only by entities licensed by either federal or state regulators.
Furthermore, the bill places strict limitations on algorithmic stablecoins, citing their inherent volatility and risk. It also draws inspiration from previous work done under former Representative Patrick McHenry’s Clarity for Payment Stablecoins Act, folding in aspects that would support innovation while maintaining regulatory safeguards.
Senator Cynthia Lummis, a strong advocate for crypto innovation in the Senate, remarked that Memorial Day (May 26) is a “fair target” to aim for final passage of the bill. While there are still debates to be had, the advancing of the GENIUS Act signals a critical turning point in how the U.S. government views — and intends to manage — the future of stable digital currencies.
With the legislative spotlight now firmly fixed on stablecoins, the coming weeks could reshape the contours of U.S. crypto regulation — potentially providing long-awaited clarity for the industry, investors, and regulators alike.
