US Senate Advances Stablecoin Regulation Bill
Update (May 20, 3:17am UTC): The following article includes updated statements from Senators concerning the Genius Act.
The US Senate has voted to move forward with a significant stablecoin regulation measure after prior attempts to advance it were blocked by a Democratic senator, who raised concerns about President Donald Trump’s extensive cryptocurrency ventures.
A crucial procedural vote on the US Stablecoins Act, also known as the Genius Act, took place on May 19, resulting in a 66-32 vote in favor of advancing the bill.
Notably, several Democrats, including Mark Warner, Adam Schiff, and Reuben Gallego, shifted their votes, supporting a motion that solidifies the bill’s path for discussion in the Senate.
Senator Cynthia Ramis, a prominent advocate for the bill, stated on May 15 that achieving passage of the act by May 26 is a “fair goal.”
Some Democrats withdrew their backing for the bill on May 8, citing worries about possible conflicts of interest tied to Trump’s crypto endeavors and the bill’s anti-money laundering provisions, which had stalled its progress.
Warner expressed, in a statement prior to the vote, that the US “cannot afford to continue standing on the sidelines” as the cryptocurrency landscape evolves, addressing concerns about Trump’s involvement in encryption ventures.
“We cannot let corruption cloud our view of the broader reality. Blockchain technology is here to stay. If American lawmakers don’t take the lead, others will shape it in ways that don’t align with our interests or democratic values.”
Warren Criticizes Bill’s Efficacy Against “Crypto Corruption”
Senator Elizabeth Warren, a long-time skeptic of cryptocurrencies, stands as a notable opponent of the Stablecoin bill. Before the vote, she emphasized that Trump’s “clear code corruption” went unaddressed.
Recently, Trump and his family initiated several crypto projects, which include Memecoins and a Crypto Mining Company, among others.
“Trump and his family have already earned hundreds of millions from these crypto efforts, and with this bill, they stand to gain even more from the stablecoin, USD1,” she remarked.
Senator Bill Hagerty introduced the Genius Act on February 4, aiming to regulate the approximately $2.5 trillion stablecoin market, which is predominantly led by Tether (USDT) and Circle USDC (USDC).
The bill necessitates full support for stablecoin and mandates regular security audits and authorization from federal or state regulators. Only licensed entities are permitted to issue stablecoins, although algorithmic stablecoins are subject to restrictions.
Hagerty’s proposal draws from a discussion draft put forth in October by former Representative Patrick McHenry’s Payment Stablecoins Act.
