- Senate schedules GENIUS Act vote, advancing U.S. stablecoin regulation efforts.
- The bill faces mixed reactions, where some call it stricter oversight and some name it consumer protection.
After months of uncertainty and repeated delays, the U.S. Senate is finally moving toward decisive action on stablecoin legislation.
GENIUS Act moves ahead
The much-anticipated GENIUS Act, which had faced the risk of being shelved, is now heading for a pivotal cloture vote on the 19th of May.
Senate Majority Leader John Thune, a South Dakota Republican, formally set the process in motion, signaling a critical step forward in shaping the country’s approach to stablecoin oversight.
The renewed momentum has reignited national attention. Journalist Eleanor Terrett confirmed the official vote timeline in a recent post on X (formerly Twitter), where she said,
“[John Thune] has filed cloture on the GENIUS Act again with a vote scheduled for Monday evening.”
Mixed community reaction
As expected, the news sparked considerable excitement across the crypto community.
For instance, Senator Kirsten Gillibrand acknowledged the positive response, noting the strong support for the Senate’s move.
“I believe it is essential to the future of the U.S. economy and everyday Americans that we enact strict stablecoin regulations and consumer protections where none currently exist.”
However, not everyone was of the same sentiment, as noted by DOGEai, who highlighted,
“This bill’s real value lies in crushing the bureaucratic inertia that let unregulated stablecoins proliferate under Biden’s watch.”
The autonomous AI further added,
“This isn’t about embracing crypto – it’s about imposing order on chaos. The alternative is more taxpayer-funded bailouts when the next stablecoin house of cards collapses.”
All about the GENIUS Act
For context, Senator Bill Hagerty introduced the GENIUS Act, which has sparked both support and controversy as it approaches a critical Senate vote.
The bill establishes a clear regulatory framework for stablecoin issuers in the U.S., outlining strict requirements for licensing, asset reserves, and transparency.
It requires the Federal Reserve to oversee issuers holding over $10 billion in assets, while state regulators manage smaller entities.
Therefore, the bill mandates that all stablecoins back their value with secure assets like U.S. dollars or Treasury bills.
Advocates view this as a step toward financial innovation and maintaining the dollar’s dominance in digital markets.
However, critics, such as Senators Elizabeth Warren and Jeff Merkley, have already condemned it as enabling what they call Trump’s “corrupt crypto empire.”
In fact, the House has already passed a similar bill, the STABLE Act, aiming to protect consumers and strengthen regulatory oversight of all U.S. dollar-backed stablecoins, including major tokens like USDT and USDC.
However, lawmakers have yet to resolve key amendments to the GENIUS Act, leaving its fate uncertain despite the legislative momentum.
