The U.S. Senate voted to advance the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bill aimed at creating a regulatory framework for stablecoins, which are cryptocurrencies pegged to assets like the U.S. dollar. On June 11, 2025, the Senate voted 68-30 to invoke cloture, allowing the bill to proceed to debate and a potential final vote.
This followed an earlier vote on May 19, 2025, where it passed 66-32, overcoming initial resistance from Democrats concerned about consumer protections, national security, and conflicts of interest, particularly tied to President Donald Trump’s crypto ventures, including his family’s World Liberty Financial and its USD1 stablecoin. The GENIUS Act requires stablecoin issuers to maintain 1:1 liquid reserves, adhere to anti-money laundering rules, and obtain federal or state approval.
It also bans yield-bearing stablecoins and restricts non-financial tech companies from issuing stablecoins unless they meet strict criteria. Supporters, including Senators Bill Hagerty and Kirsten Gillibrand, argue it promotes innovation, consumer protection, and U.S. dollar dominance. Critics, led by Senator Elizabeth Warren, claim it fails to address conflicts of interest and risks financial instability, citing Trump’s crypto dealings and weak safeguards.
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If passed, the bill could significantly grow the $250 billion stablecoin market, but its fate in the House remains uncertain, as the House is considering a separate bill, the STABLE Act, with differing regulatory approaches. The GENIUS Act could legitimize and expand the $250 billion stablecoin market by providing a clear regulatory framework, attracting institutional investors and fostering innovation in blockchain-based financial services.
The bill mandates 1:1 liquid reserves and anti-money laundering compliance, aiming to enhance consumer safety and reduce risks of fraud or insolvency seen in past crypto failures like TerraUSD. By regulating stablecoins, the U.S. could maintain the dollar’s global financial dominance, countering threats from unregulated or foreign-backed digital currencies.
The act supports crypto innovation but bans yield-bearing stablecoins and restricts non-financial tech firms, potentially stifling certain business models while mitigating speculative risks. Critics highlight potential conflicts of interest, particularly with President Trump’s crypto ventures like World Liberty Financial’s USD1 stablecoin, which could benefit from lax oversight, raising concerns about political influence in financial regulation.
A regulated stablecoin framework could position the U.S. as a leader in digital finance, but overly restrictive rules might push innovation to jurisdictions like the EU or Singapore with clearer crypto laws. The bill balances innovation and regulation, ensuring consumer protection while fostering a competitive U.S. crypto industry. Clear rules will attract investment, prevent illicit activity, and maintain U.S. financial leadership. They emphasize job creation and technological advancement.
Bipartisan senators, crypto firms, and investors who see stablecoins as a transformative financial tool. The bill is too weak, risking financial instability and enabling conflicts of interest, especially with Trump’s crypto ties. Insufficient consumer protections, inadequate safeguards against money laundering, and potential favoritism toward politically connected crypto ventures undermine the bill’s integrity.
Progressive Democrats, consumer advocacy groups, and skeptics of crypto’s systemic risks. Republicans largely favor the bill for its pro-market stance, aligning with Trump’s crypto-friendly policies. moderates support it for economic competitiveness, while progressives oppose it over regulatory gaps and ethical concerns.
The 68-30 Senate cloture vote (June 11, 2025) shows bipartisan support but also significant Democratic resistance (30 against, mostly progressives). The House’s competing STABLE Act, with stricter rules, highlights a divide between Senate and House approaches. Reconciling these could delay or derail stablecoin legislation, reflecting broader ideological tensions over crypto’s role in finance.