{"id":480855,"date":"2025-05-19T22:29:36","date_gmt":"2025-05-19T21:29:36","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=480855"},"modified":"2025-05-19T22:30:16","modified_gmt":"2025-05-19T21:30:16","slug":"us-senate-to-vote-on-genius-stablecoin-bill-despite-political-divide","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/us-senate-to-vote-on-genius-stablecoin-bill-despite-political-divide\/","title":{"rendered":"US Senate to vote on GENIUS stablecoin bill despite political divide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The US Senate is expected to vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act today at <\/span><strong><a href=\"https:\/\/x.com\/intangiblecoins\/status\/1924473235548053660\">approximately 8 P.M. EDT<\/a>.\u00a0<\/strong>However, its unclear whether the bill will pass or continue to face delays.<\/p>\n<p><span style=\"font-weight: 400;\">The GENIUS Act seeks to establish a federal regulatory framework for payment stablecoins, but has faced hurdles in progress in recent weeks due to a divide among lawmakers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The debate came just over a week after a<\/span> <strong><a href=\"https:\/\/cryptoslate.com\/genius-act-stalls-in-senate-lawmakers-eye-new-proposal-next-week\/\">failed procedural vote<\/a><\/strong><span style=\"font-weight: 400;\">, in which all 49 Democratic senators blocked a motion to invoke cloture on the bill\u2019s consideration, halting its initial path to the floor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In subsequent days, reports of a bipartisan effort to re-adapt the bill for another vote surfaced, resulting in changes to the proposal initially denied.<\/span><\/p>\n<h2><strong>Democrats push back<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">While supporters say the bill would bolster US dollar dominance and provide critical oversight to a $250 billion market, opponents argue the latest draft contains broad loopholes for political figures and tech companies while creating security risks and insufficient consumer protections.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A May 19 memo by Senate Banking Committee Democratic staff<\/span> <strong><a href=\"https:\/\/www.banking.senate.gov\/imo\/media\/doc\/updatedgeniusanalysis.pdf\">accused the latest draft<\/a><\/strong><span style=\"font-weight: 400;\"> of enabling \u201cTrump crypto corruption.\u201d It references provisions that fail to bar elected officials, including President <a href=\"https:\/\/cryptoslate.com\/people\/donald-trump\/\">Donald Trump<\/a> and his family, from owning or profiting from stablecoin ventures.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The memo claimed that the bill\u2019s current language could allow Trump to benefit from the <a href=\"https:\/\/cryptoslate.com\/coins\/world-liberty-financial-usd\/\">USD1<\/a> stablecoin, the token issued by a project endorsed by him and his family, World Liberty Financial.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The memo also warned of expanded loopholes for offshore issuers like <a href=\"https:\/\/cryptoslate.com\/companies\/tether\/\">Tether<\/a> and private big tech firms. It noted that allowing the trading of stablecoins issued offshore on US-based exchanges could make it easier for criminals to move funds into the US financial system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The document also stated that the draft still allows companies not predominantly engaged in financial services to issue their own stablecoins, with <a href=\"https:\/\/cryptoslate.com\/people\/elon-musk\/\">Elon Musk\u2019s<\/a> <a href=\"https:\/\/cryptoslate.com\/companies\/x\/\">X<\/a> mentioned as a potential beneficiary. It further argued that the exemption for private issuers undermines existing prohibitions on corporate currency issuance and poses systemic financial risks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The memo concluded that the draft\u2019s updates are \u201cfig leaves,\u201d restating existing protections without materially addressing national security concerns, sanctions enforcement, or misleading marketing by issuers.<\/span><\/p>\n<h2><strong>Necessary first step<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">In contrast, bill proponents, including Senate Republicans, industry groups, and some moderate Democrats, framed the GENIUS Act as a needed legislative foundation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sen. Bill Hagerty (R-TN), the bill\u2019s sponsor,<\/span> <strong><a href=\"https:\/\/x.com\/SenatorHagerty\/status\/1923439106937209194\">described<\/a><\/strong><span style=\"font-weight: 400;\"> the legislation as pro-growth and \u201cthe first ever regulatory framework for payment stablecoins.\u201d He argued it would strengthen the US dollar, increase demand for Treasury assets, and keep innovation onshore.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bo Hines, executive director of the President\u2019s Council of Advisers for Digital Assets, also<\/span> <strong><a href=\"https:\/\/x.com\/BoHines\/status\/1923399138051338698\">voiced support<\/a><\/strong><span style=\"font-weight: 400;\">, saying the legislation would modernize the financial system and provide Americans with faster and more affordable payment tools.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Amanda Tuminelli, executive director and chief legal officer of the DeFi Education Fund,<\/span> <strong><a href=\"https:\/\/x.com\/fund_defi\/status\/1924434067862249888\">issued a statement<\/a><\/strong><span style=\"font-weight: 400;\"> urging bipartisan support. She claimed regulatory clarity for stablecoins is in the best interest of the US dollar, American consumers, and small businesses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ji Kim, acting CEO of the Crypto Council for Innovation,<\/span> <strong><a href=\"https:\/\/x.com\/crypto_council\/status\/1924468277004083220\">said<\/a><\/strong><span style=\"font-weight: 400;\"> on May 19 that the vote is \u201ca critical step to establish a regulatory framework for stablecoins that fosters responsible innovation\u201d and that the legislation is essential for preserving US leadership in digital finance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Support has also come from advocacy organizations like Stand With Crypto, which<\/span> <strong><a href=\"https:\/\/x.com\/standwithcrypto\/status\/1924469953412874300\">declared<\/a><\/strong><span style=\"font-weight: 400;\"> the Senate vote a \u201ckey vote\u201d for its 52 million American members and urged constituents to pressure senators to back the bill.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Justin Slaughter, VP of regulatory affairs at <a href=\"https:\/\/cryptoslate.com\/companies\/paradigm\/\">Paradigm<\/a> and a former Democratic staffer,<\/span> <strong><a href=\"https:\/\/x.com\/JBSDC\/status\/1924514882981912679\">offered<\/a><\/strong><span style=\"font-weight: 400;\"> a pragmatic endorsement, saying that this is \u201cclose to the best we can get for years and years.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Slaugther added that while the bill isn\u2019t perfect, it addresses the regulatory void surrounding stablecoins and mirrors the approach adopted by the EU, UK, and Japan.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Senate is expected to vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act today at approximately 8 P.M. EDT.\u00a0However, its unclear whether the bill will pass or continue to face delays. The GENIUS Act seeks to establish a federal regulatory framework for payment stablecoins, but has faced hurdles in [&hellip;]<\/p>\n","protected":false},"author":1511,"featured_media":472795,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,77968,79915,11,32631],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>US Senate to vote on GENIUS stablecoin bill despite political divide<\/title>\n<meta name=\"description\" content=\"Lawmakers clash over amendments as the controversial GENIUS Act aims to regulate the $250 billion stablecoin market.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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