In a major step forward for crypto oversight, the U.S. Senate approved a key procedural vote on the GENIUS Act, a bill aimed at regulating USD-pegged stablecoins. With a 62-32 vote on May 19, the Senate signaled growing bipartisan support for a clearer regulatory framework.
Bipartisan Shift Boosts GENIUS Act
Even Democratic senators who previously opposed the measure—including Mark Warner, Adam Schiff, and Ruben Gallego—voted in favor of moving it forward. The bill, formally known as the Guiding and Establishing National Innovation for US Stablecoins Act, now heads to a Senate floor debate before a final vote.
Supporters are optimistic it will pass with a simple majority. Senator Cynthia Lummis said she expects a full Senate vote by Memorial Day (May 26).
Concerns Over AML and Political Ties Eased
Earlier opposition from some Democrats stemmed from concerns about the bill’s Anti-Money Laundering (AML) provisions and its links to Trump-related crypto interests. Yet, Senator Warner acknowledged that while corruption risks exist, the U.S. must still lead in shaping blockchain policy.
“We can’t let others write the rules for us,” Warner noted. “Blockchain technology is here to stay, and we need to guide its future to align with democratic values.”
What the GENIUS Act Proposes
If passed, the GENIUS Act would set strict guidelines for stablecoin issuers. These include:
- Mandatory 1:1 U.S. dollar reserves for all stablecoins.
- Strong KYC and AML requirements.
- Oversight for firms issuing stablecoins over a $10 billion market cap.
- Measures to prevent tech monopolies from dominating the sector.
This act aims to establish a secure and transparent digital asset environment in the U.S.
What Comes Next?
Following the Senate’s full vote, the GENIUS Act will move to the House of Representatives, where a similar bill—the STABLE Act—is under review. Experts expect the two bills may need to be reconciled for final passage.
Still, confidence is rising. Senator Bill Hagerty recently stated that the Senate is likely to pass the GENIUS Act, fueling optimism across the crypto industry.