The U.S. Senate voted 66-32 on Monday evening to advance first-of-its-kind legislation aimed at regulating stablecoins, digital currencies tied to the value of the U.S. dollar. The procedural vote on the GENIUS Act represents a breakthrough in cryptocurrency legislation after an earlier attempt failed earlier this month amid Democratic concerns about President Donald Trump’s cryptocurrency dealings.
The legislation, known as the GENIUS Act, focuses on stablecoins, which are digital currencies tied to the value of specific assets – in this case, the U.S. dollar. The bill’s advancement represents a rare bipartisan effort in the Senate for major legislation, though the Democratic caucus remains divided in its support.
OFFICIAL: Stablecoin legislation The GENIUS Act clears key vote in the Senate and now moves to the floor for debate 🇺🇸 pic.twitter.com/beNOl2khNO
— Bitcoin Magazine (@BitcoinMagazine) May 20, 2025
Partisan Divisions Remain
While sixteen Democrats joined with Republicans to advance the bill, senior Democratic leadership – including Senate Minority Leader Chuck Schumer and Minority Whip Dick Durbin – voted against invoking cloture, highlighting the ongoing partisan tensions surrounding the legislation.
Democratic Senator Andy Kim, who previously supported the bill at the Banking Committee level, did not support Monday’s cloture vote. Video footage showed him discussing the draft with fellow Democrat Senator Kirsten Gillibrand, suggesting there’s still work to be done to secure Democratic support for the final vote.
Senate Banking Committee Chair Tim Scott (R-S.C.) celebrated the vote, saying, “Tonight’s vote is a welcome and long-overdue step toward asserting U.S. leadership in digital assets. After playing politics, I’m glad many of my Democratic colleagues have returned to the table and are supporting a bipartisan product they helped shape.”
Changes to Secure Democratic Support
Republicans and Democrats continued negotiations after the bill initially failed to advance on May 8, resulting in a new amendment draft over the weekend that garnered enough support among Democrats to move the package forward.
After two weeks of negotiations, the two sides reached an agreement on new language, with crypto-friendly Democrats touting “major victories” on anti-money laundering, national security and consumer protection provisions. They also highlighted new restrictions aimed at blocking Big Tech firms from launching their own stablecoins.
The latest draft of the GENIUS Act includes wording to address stablecoins issued by BigTech firms, without imposing an outright ban. Instead, it gives some discretion to a committee involving the Treasury, Federal Reserve and FDIC.
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Warren Leads Opposition
Senator Elizabeth Warren has remained a vocal opponent of the legislation. In a speech on the Senate floor on Monday afternoon, Warren insisted, “while a strong stablecoin bill is the best possible outcome, this weak bill is worse than no bill at all.”
Warren has opposed earlier versions of the GENIUS Act, warning that the bill’s attempts to regulate stablecoin are toothless and could harm consumers, spur corruption and even lead to a potential financial crisis. Senate Banking Democratic staff, under Warren’s leadership, argued in a memo last week that the bill “paves the way for more Trump crypto corruption” and that its Big Tech restrictions don’t go far enough.
Trump’s Crypto Ventures Complicate Legislation
The president’s growing involvement in cryptocurrency ventures has become a flashpoint in the debate. Trump is set to have dinner with the top investors in his meme coin later this week. The token, which the president launched shortly before inauguration, has traded higher in recent weeks as investors competed for one of 220 coveted spots at the private dinner.
World Liberty Financial, the crypto venture launched by Trump and his sons, also announced earlier this month that its new stablecoin would be used to conduct a $2 billion transaction between Emirati firm MGX and crypto exchange Binance.
Members of the Trump family are backers of World Liberty Financial, which issued the USD1 stablecoin. A UAE company chaired by the country’s national security advisor bought $2 billion of the stablecoin to make a payment.
Democrats have raised concerns that the president is using the various crypto ventures to profit off his office while also exposing the federal government to potential foreign influence.
Senator Mark Warner, who initially voted to block the bill, explained his change of position: “Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight, hide shady financial dealings, and personally profit at the expense of everyday Americans. We have a duty to shine a light on these abuses and stop Donald Trump from exploiting emerging technologies to enrich himself, dodge accountability, and weaken the safeguards that protect American consumers and the rule of law.”
However, Warner added, “Innovation in this space is happening, with or without us. We have a responsibility to ensure it happens safely, transparently, and in a way that advances U.S. economic and national security interests. The GENIUS Act will help get us started.”
Industry Warnings About Delay
The stakes for the legislation extend beyond the current political moment. XRP advocate John E. Deaton has warned that if the Senate does not pass the GENIUS Act, meaningful cryptocurrency legislation may be delayed until 2029. Senator Bill Hagerty, who introduced the bill, claims this will encourage innovation linked to the U.S. dollar and bring the long-awaited clarity to cryptocurrency laws in the U.S.
Senator Kirsten Gillibrand has noted that while there are ethics elements to the stablecoin bill, it is not an ethics bill, quipping that it would be rather a long one if it had to deal with Trump ethics issues. She previously expressed optimism that the bill could be passed within a week.
What’s Next
The procedural vote clears the way for the Senate to debate the bill, with a full Senate vote still needed for final passage. The GENIUS Act represents just one piece of the Trump administration’s legislative agenda for the crypto industry, alongside market structure legislation that would clarify how regulatory agencies split oversight of digital assets.
As one Senate Democrat put it, “Stablecoins are already playing an important role in the global economy, and it is essential that the U.S. enact legislation that protects consumers, while also enabling responsible innovations.”
With major industry players watching closely and significant political divisions remaining, the path to final passage may still face obstacles in the days ahead.
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