- The U.S. Senate approved the GENIUS Act, a bill creating federal rules for stablecoins.
- The measure passed with a 68-30 vote, gaining support from 18 Democrats and most Republicans.
- The GENIUS Act aims to bring stablecoins, which are digital assets tied to the U.S. dollar, into the mainstream financial system.
- Senators made changes after weeks of negotiation due to party disagreements and amendment disputes.
- The bill’s future depends on House action, where leaders may package it with broader crypto regulations.
The U.S. Senate passed the GENIUS Act on Tuesday, marking the first time the chamber has approved legislation specifically for regulating stablecoins. The bill, which establishes a federal framework for these digital assets linked to the U.S. dollar, received broad bipartisan support after weeks of debate and negotiation.
Eighteen Democrats joined most Republicans in favor, with only two Republicans—Rand Paul (R-KY) and Josh Hawley (R-MO)—voting against the bill. The final vote was 68-30, after a series of failed test votes and legislative hurdles that almost derailed the measure. The bill aims to move stablecoins closer to full integration within the U.S. financial system.
Lead sponsors Kirsten Gillibrand (D-NY), Bill Hagerty (R-TN), and Cynthia Lummis (R-WY) worked closely to make adjustments following a deadlock in negotiations with Senate Democrats earlier this month. Lummis said that "we want to try and get as much done in the committee as possible," as attention shifts to the CLARITY Act, which could set broader rules for digital assets across the country.
Negotiations leading up to the vote included the removal of proposed amendments, such as a credit card swipe fee bill from Roger Marshall (R-KS). Senate Majority Leader John Thune (R-SD) abandoned plans for an open amendment process to prevent controversial changes that could stall the bill further.
Some Democratic senators opposed the GENIUS Act, citing concerns about the influence of the crypto industry and the bill’s consumer protections. According to Elizabeth Warren (D-MA), "the bill had weak safeguards for consumers and financial stability." Allegations about financial interests and self-dealing within former President Donald Trump‘s family, who have investments in cryptocurrency, were also mentioned as reasons for opposition.
The cryptocurrency sector strongly backed the legislation, having spent tens of millions of dollars during the last election cycle to support pro-crypto lawmakers. According to Senate leaders, the bill’s passage is seen as a major milestone for the industry.
House Republican leaders are considering whether to send the stand-alone GENIUS Act to President Donald Trump‘s desk or combine it with the more comprehensive crypto bill as they continue discussions. For now, the Senate regards the GENIUS Act as a major breakthrough in bridging party divisions during Trump’s second term and advancing cryptocurrency regulation in the U.S.
Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to traditional currencies like the U.S. dollar, which helps reduce price volatility. The GENIUS Act is the first major piece of legislation on this subject to advance out of the Senate Banking Committee in eight years.
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