The U.S. Senate has taken a significant step towards federal regulation of stablecoins on Wednesday, voting 68-30 to invoke cloture on a substitute modification to the GENIUS Act.
The transfer clears the way in which for a ultimate vote on the laws as early as Monday, except Senate leaders agree to hurry up the talk course of.
Senate Advances GENIUS Act, Paving Approach for Ultimate Stablecoin Vote
Formally titled the “Guiding and Establishing Nationwide Innovation for U.S. Stablecoins Act,” the GENIUS Act proposes strict guidelines for stablecoin issuers. It could require all stablecoins to be absolutely backed by U.S. {dollars} or equally liquid belongings.
JUST IN: US Senate votes to maneuver ahead with stablecoin invoice the GENIUS Act
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Issuers with greater than $50 billion in market cap can be topic to obligatory annual audits. The invoice additionally consists of provisions round foreign-issued stablecoins.
Senate Banking Committee Chair Tim Scott, a Republican from South Carolina and one of many invoice’s sponsors, known as the vote a win for each innovation and nationwide safety.
“Let me be clear, this didn’t occur accidentally. It occurred as a result of we led. To those that mentioned Washington couldn’t act… let’s show them improper,” Scott mentioned, talking earlier than the vote.
The invoice handed the procedural hurdle with bipartisan assist, although some outstanding Democrats opposed it. Senate Minority Chief Chuck Schumer, together with Senators Elizabeth Warren and Amy Klobuchar, voted no. Others, resembling Senator Ruben Gallego of Arizona, voted in favor.
Opponents of the invoice raised a number of issues. Senator Warren criticized the chamber for not addressing proposed amendments and pointed to what she sees as deeper moral points tied to President Donald Trump.
“By means of his crypto enterprise, Trump has created an environment friendly means to commerce presidential favors… By passing the GENIUS Act, the Senate shouldn’t be solely about to bless this corruption, however to actively facilitate its growth,” she mentioned, from the Senate flooring.
Regardless of the criticism, the invoice obtained backing from the Trump administration. A press release launched Monday mentioned that if the invoice had been introduced to the president in its present kind, his senior advisors would advocate signing it into legislation.
Trump has mentioned he desires stablecoin laws on his desk earlier than August.
Nevertheless, the invoice’s future within the Home remains to be unclear. The Home Monetary Companies Committee handed its personal model of stablecoin laws in Could, however the full Home has but to vote.
Variations between the Senate and Home variations, notably round oversight of overseas issuers and state-level regulation, nonetheless should be resolved.
For now, all eyes are on Monday’s vote, which may mark a turning level in how the U.S. approaches stablecoin regulation.
Trump’s Deep Crypto Ties Stir Debate as Stablecoin Invoice Nears Ultimate Senate Vote
Because the Senate prepares for Monday’s ultimate vote on the GENIUS Act, tensions round President Donald Trump’s deepening ties to crypto are fueling contemporary debate on Capitol Hill.
The invoice initially confronted Democratic resistance over provisions regarding overseas issuers, AML requirements, and the potential for company stablecoin issuance, however a second cloture vote in late Could handed 66-32, placing the invoice on observe for a ultimate vote.
Nevertheless, Trump’s increasing crypto empire has added a brand new layer of stress.
Over the previous six months, Trump and his household have launched a sequence of crypto ventures, together with World Liberty Monetary, a digital asset platform itemizing Trump as “Chief Crypto Advocate.” The agency not too long ago debuted a stablecoin, USD1, backed by U.S. Treasuries.
Trump-affiliated entities reportedly personal a majority stake within the firm and a big share of its tokens.
Moreover, the Trump household rolled out memecoins resembling $TRUMP and $MELANIA, taking advantage of transaction charges regardless of excessive value volatility.
Democrats have raised conflict-of-interest issues, particularly after revelations that $TRUMP coin holders paid hundreds of thousands to attend a non-public gala with Trump.
In the meantime, Home committees have superior a broader crypto regulatory invoice, some members pushing to merge it with the stablecoin framework now earlier than the Senate.
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