Senate Advances Historic Stablecoin Bill Amid Democratic Division
The U.S. Senate moves forward with the GENIUS Act to regulate stablecoins, revealing internal Democratic tensions over Trump’s crypto ties. Learn what’s at stake.
The U,S. Senate has taken a Significant step Toward regulating Stablecoins by Advancing the Guiding and Establishing ”National” Innovation for U,S. Stablecoins ( GENIUS ) Act,. However,, the bill,s progression has Exposed deep Divisions among Democrats,, primarily due to Concerns over former President ”Donald Trump,s” Involvement in the Cryptocurrency Sector,.
Overview of the GENIUS act:
The GENIUS act aims to Establish a Federal Regulatory framework for stablecoins — Cryptocurrencies Pegged to Assets like the U,S. Dollar or Gold,. Key Provisions include :
- Mandating that Stablecoin issuers Maintain Reserves of liquid,, safe Assets such as Treasury Bills,.
- Requiring Compliance with anti — money laundering and Counter — terrorism Financing Regulations,.
- Granting Stablecoin Holders Priority in Bankruptcy Scenarios,.
- Implementing Restrictions to Prevent major tech Companies like Meta and Google from Issuing their Own Stablecoins without Special Approval,.
These Measures are Designed to ensure Consumer Protection,, national Security,, and the Stability of the Rapidly growing Stablecoin Market,, which is Nearing a Valuation of ”$250” billion ,.
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Democratic concerns and opposition:
Despite initial Bipartisan support,, the Bill has faced opposition from several Senate Democrats,. Their Concerns center around Potential conflicts of interest Involving former President Trump,, who has Recently launched a Meme coin and whose Family venture,, World Liberty Financial,, introduced its own Stablecoin,, USD1,. Critics Argue that the Bill lacks Sufficient Ethical Safeguards and may further Entrench presidential Conflicts of interest ..
Senator Elizabeth Warren has been a Vocal critic,, warning that the bill Could benefit Trump financially and Lacks necessary Protections against Corruption.. She Emphasized the need for stronger Provisions on anti — money laundering,, national security,, and Accountability for Noncompliant Actors ,.
Procedural vote and legislative hurdles:
On May 19,, 2025,, the Senate held a procedural vote to Advance the GENIUS Act,, resulting in a 66 — 32 outcome,. While this indicates Significant support,, the bill still Faces hurdles before final Passage,. Senate Majority Leader John Thune Acknowledged that an Expedited passage is unlikely in the Immediate term,, citing Ongoing Negotiations and the Need to address Democratic Concerns ,.
Broader Implications for ”Crypto” Regulation:
The ”GENIUS” Act represents a Critical step toward Establishing a Regulatory framework for Stablecoins in the United States.. However,, the ” Controversy ” Surrounding Trump,s Involvement in the Crypto Industry Underscores the Complexities of Crafting Legislation in this Rapidly Evolving Sector..As the Senate Continues to Deliberate,, the Outcome of this bill could set Significant precedents for future ” Cryptocurrency ” Regulation and the intersection of Politics and digital Assets..