Senate Advances GENIUS Act to Regulate Stablecoins in 66–22 Vote

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When Donald Trump took over as President of the United States in January 2025, he stated that he would ensure the U.S becomes a global powerhouse for cryptocurrency. Since he made that statement, there has been an increased acceptance of cryptocurrency by the American population, banking institutions, and now, the legislative arm of the government.

In recent developments, the GENIUS Act advanced in the U.S. Senate after getting a 66-22 cloture vote and later a final passage vote of 68–30. A cloture vote is a procedural vote in the U.S. Senate used to end debate on a bill and move it forward toward a final vote. The Act is an industry-backed bill that is set to help the U.S. government regulate some cryptocurrencies by establishing legislation to oversee stablecoins.

The move toward regulation demonstrates how interconnected crypto has become in daily life. Digital assets such as Bitcoin and USDT (a major stablecoin) are now used not just for investing, but also for everyday activities, like using a Bitcoin POS terminal to make purchases while shopping at the mall, or making quick deposits and withdrawals at a Bitcoin casino while gaming online. The GENIUS Act shows that lawmakers are beginning to recognize and formalize this growing asset.

What is The GENIUS Act About?

Stablecoins have become a crucial part of the crypto ecosystem. They are tokens that are pegged to another asset such as gold or the U.S dollar (e.g, USDT).  The GENIUS Act will help in regulating the exchange and distribution of stablecoins.

The bill states that all stablecoin issuers must have a reserve of these assets. This reserve would back up the coin and also protect users from losing their funds, even if many owners of the coin are trying to sell at the same time. The bill also includes anti-money laundering and anti-terrorism rules that stablecoin issuers must comply with. To ensure that users are protected in the event of bankruptcy, the bill mandates that issuers give coin holders first priority to receive their money back.

What People Are Saying About The GENIUS ACT

The GENIUS Act has been greeted with mixed reactions from lawmakers, politicians, and the general public. Those in support of the act appreciate that the Senate has come up with this novel initiative, which will help standardize a major part of the cryptocurrency industry. Supporters of the Act argue that it will protect customers from the volatility of the crypto market and also make it easy for traditional financial institutions to enter and grow the market.

The founder of MIT Cryptoeconomics Lab, Christian Catalini, has shown his support, saying that it would help digital assets become mainstream currency. He also added that it would lead to innovation and competition, as many issuers will be seeking entry into the market, giving customers a wide range of options. Issuers will be more focused on delivering quick and useful solutions to customers and businesses to avoid losing their customer base to other competitors.

Critics, on the other hand, argue that the act will give way to weak regulations, which would fail to properly safeguard consumers or stop illegal trading of stablecoins. There’s also an argument that the bill fails to address the concerns caused by President Trump’s involvement in a stablecoin investment.

In March this year, a crypto firm backed by Trump issued a stablecoin named USD1, which got a $2 billion investment from an investment firm based in Abu Dhabi. While Trump’s company stood to benefit financially from the deal, he has not commented publicly on his involvement or the firm’s position in the transaction.

Although the Act has a clause that stops Congress members from issuing or distributing a stablecoin product while in office, Sen. Elizabeth Warren says it still doesn’t address the concerns of many critics. She, however, adds that it is better to have a weak bill than a non-existent one.

The GENIUS Act is Causing A Political Divide

The GENIUS Act has caused a division in the political scene as it has put Democrats in a heated debate on whether or not they should allow the bill to be passed into law, given that it involves President Trump’s growing crypto empire. Although the bill has faced a lot of opposition, it has gotten support from 16 Democrats, including Sen. Adam Schiff and Sen. Cory Booker.

Usually, Democrats are united when it comes to opposing Trump; however, this cryptocurrency policy caused a big difference of opinion within the party. Crypto-friendly Democrats don’t see the issues arising from the conflict of interest as a big problem, and they are saying that many digital asset firms can benefit largely from this. However, Sen. Chris Murphy has categorically stated that the bill supports Trump’s deceitful stablecoin business. Ultimately, the GENIUS Act shows that in the next few years, Congress may find it very difficult to regulate the crypto industry.

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