U.S. Senate’s Stablecoin Push Still Alive as Bill May Return to Floor: Sources
The U.S. Senate is poised to revive its stalled effort to regulate stablecoin issuers, potentially advancing a revised version of the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act as early as Thursday. The bill aims to create a federal regulatory framework for cryptocurrencies pegged to other assets, such as USDT and USDC.
A previous version, enjoying initial bipartisan support, encountered a setback when Democrats raised objections, primarily concerning President Trump’s involvement in the crypto industry. Specifically, concerns arose from MGX’s acquisition of a Binance stake using USD1, a stablecoin linked to Trump and his family. This led to a failed cloture vote, requiring 60 senators to advance the bill to a floor debate. While every Democrat and two Republicans voted against cloture, the legislation remains alive due to procedural maneuvering.
The revised GENIUS Act, however, is unlikely to directly address Trump’s crypto interests. Senator Gillibrand, a key figure in crypto legislation, acknowledged the bill’s strong ethics requirements but emphasized its primary focus remains on regulatory structure, not Trump’s ethics. She expressed optimism regarding a forthcoming vote.
Senator Lummis, a Republican co-sponsor, echoed this sentiment, urging colleagues to avoid distractions from the bill’s core goal: establishing a clear regulatory framework for stablecoins. She highlighted the importance of this legislation for onshoring the industry and strengthening the dollar’s position as the world’s reserve currency.
Bo Hines, Trump’s executive director for the President’s Council of Advisers on Digital Assets, confirmed ongoing negotiations and expressed confidence in the bill’s continued progress. While the exact details of the revised text remain undisclosed, the Senate’s renewed push suggests a potential breakthrough in the near future, paving the way for a crucial vote on Thursday. The procedural vote anticipated may not be the final cloture vote, providing more time for negotiations.
