U.S. Senate Successfully Advances Procedural Vote on GENIUS Act, Progressing Stablecoin Regulation
The U.S. Senate successfully advanced the procedural vote for the GENIUS Act on May 8, furthering stablecoin regulation. However, before it becomes law, Congress members still need to engage in the next round of debate and amendments.
(Background: Payment giant Stripe launched “Stablecoin Accounts” supporting USDC and USDB, available in over 100 countries. Is it accessible in Taiwan?)
(Additional Context: U.S. Stablecoin Legislation Urgent: Democrats Hit the Brakes: GENIUS Act Has Loopholes; Crypto-Friendly Policies Serving Trump’s Interests)
The GENIUS Act, aimed at regulating the stablecoin market in the U.S., failed to pass in the procedural vote on May 8 due to concerns from Democrats regarding consumer protection and national security provisions, as well as opposition from some Republican lawmakers. However, following another vote yesterday (19), the Senate has successfully advanced the GENIUS Act, clearing a critical procedural hurdle for establishing a clear regulatory framework for U.S. stablecoins. A knowledgeable source revealed:
The latest version of the legislation has sufficiently addressed some of the earlier concerns raised by Democrats. Although the modifications are minor, it successfully garnered support from some previously opposing Democratic senators, including Senators Ruben Gallego and Mark Warner, who announced their support prior to the vote.
What’s Next for the GENIUS Stablecoin Act?
The Senate advanced the GENIUS Act with a vote of 66 in favor and 32 against (procedural vote), with 16 Democratic senators voting alongside Republicans in support. The next step anticipates that the bill will enter formal debate and the final vote in the Senate on Tuesday evening or Wednesday.
Notably, the U.S. House of Representatives is simultaneously pushing another regulatory bill for the digital asset market. This draft, introduced by House Republicans, aims to expand the regulatory authority of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over crypto assets and establish clearer registration and fundraising processes. Some legislators have suggested considering the merging of the GENIUS Stablecoin Act with the market regulation bill to create a comprehensive federal crypto regulatory framework.
Therefore, the progress of the bill towards final legislation, its ability to effectively resolve all disputes, and the future direction of digital asset policies under the Trump administration, remain to be observed. (After Senate passage, it must be sent to the House of Representatives, but due to the Republican majority in the House, it is expected that there will not be too many obstacles.)
Core Contents and Controversies of the GENIUS Act
The core of the GENIUS Act is to establish a regulatory framework for stablecoins and their issuers, requiring issuers to obtain appropriate licenses, maintain sufficient reserves, comply with the Bank Secrecy Act, implement anti-money laundering measures, and require dollar assets to be backed 1:1. It also introduces consumer protection provisions. Amid the global trend of “de-dollarization,” this bill is seen as a key support for dollar stablecoins and the consolidation of dollar hegemony.
It is worth noting that the bill allows non-bank institutions that issue no more than $10 billion in stablecoins to be regulated at the state level, while larger issuers will be subject to federal oversight.
The previous hindrance to the bill was due to some Democratic lawmakers still being concerned about inadequate consumer protection measures, pointing out potential loopholes related to the business interests of the Trump family.
