Senate votes 68-30 to move forward with comprehensive stablecoin legislation as crypto industry awaits regulatory clarity
The United States Senate took a significant step toward establishing comprehensive stablecoin regulation on Wednesday, voting 68-30 to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The procedural vote invokes cloture, clearing the way for final passage as early as Monday.
Bipartisan Support Despite Opposition
The vote demonstrated notable bipartisan backing, with several Democrats joining Republicans to support the legislation. Senate Banking Committee Chair Tim Scott (R-S.C.), one of the bill’s cosponsors, characterized the vote as “a significant win for innovation and national security.”
“Let me be clear, this did not happen by accident,” Scott said on the Senate floor ahead of the vote. “It happened because we led. To those who said Washington could not act, to those who doubted bipartisanship — let’s prove them wrong.”
However, prominent Democrats including Senate Minority Leader Chuck Schumer of New York, Amy Klobuchar of Minnesota, and Elizabeth Warren of Massachusetts voted against the measure. Warren voiced sharp criticism from the Senate floor, arguing the legislation contains “core problems” and “weak safeguards for consumers, national security, and financial stability.”
JUST IN: US Senate votes to move forward with stablecoin bill the GENIUS Act ?? pic.twitter.com/EUWaUJeY0v
— Bitcoin Magazine (@BitcoinMagazine) June 11, 2025
Key Provisions of the GENIUS Act
The comprehensive legislation would establish several critical requirements for stablecoin issuers:
- Full backing requirement: Stablecoins must be fully backed by U.S. dollars or similarly liquid assets
- Annual audits: Mandatory for issuers with more than $50 billion in market capitalization
- Operational standards: Rigorous requirements including sufficient capital and liquidity buffers
- Risk management: Implementation of robust risk management systems
- Compliance obligations: Full adherence to the Bank Secrecy Act (BSA), including anti-money laundering (AML) and sanctions requirements
- Foreign issuer provisions: New language addressing international stablecoin operations
Trump Administration Backing
The legislation has received strong support from President Donald Trump’s administration. On Monday, Trump’s advisors issued a statement of administration policy endorsing the bill.
“If S. 1582 were presented to the President in its current form, his senior advisors would recommend that he sign it into law,” the statement read.
Senate Majority Leader John Thune echoed Trump’s vision for American crypto leadership, stating from the Senate floor: “We want to bring cryptocurrency into the mainstream, and the GENIUS Act will help us do that.” Thune emphasized that the legislation would help make the US the “crypto capital of the world,” reflecting Trump’s campaign promises.
The president has previously indicated he wants stablecoin legislation on his desk to sign before August.
Democratic Concerns Over Trump’s Crypto Ties
Democratic opposition has centered largely on concerns about Trump’s expanding cryptocurrency business interests. The president and his family have launched multiple crypto ventures, including memecoins and the World Liberty Financial platform, which recently launched its own stablecoin.
“Through his crypto business, Trump has created an efficient means to trade presidential favors like tariff exemptions, pardons, and government appointments for hundreds of millions, perhaps billions of dollars from foreign governments, from billionaires, and from large corporations,” Warren argued. “By passing the GENIUS Act, the Senate is not only about to bless this corruption, but to actively facilitate its expansion.”
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House Challenges Ahead
While the Senate appears poised for final passage, the legislation faces a more complex path in the House of Representatives. The House Financial Services Committee has advanced its own competing stablecoin bill — the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act — which passed committee by a 32-17 vote in May.
The two bills contain significant differences, particularly regarding:
- State versus federal regulatory oversight of issuers
- Treatment of foreign issuers like Tether
- Corporate issuance provisions
Both chambers will need to reconcile these differences before any final legislation can reach the president’s desk.
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Industry and Market Implications
The stablecoin market has grown exponentially, with projections suggesting it could exceed $2 trillion by the end of 2028, according to Treasury Secretary Scott Bessent. The GENIUS Act aims to provide regulatory clarity that could further accelerate mainstream adoption.
The legislation addresses long-standing industry concerns about regulatory uncertainty while establishing consumer protections that have been absent in the largely unregulated stablecoin ecosystem.
However, traditional banking institutions have expressed concerns about potential deposit drainage, particularly among smaller banks. Larger financial institutions are reportedly considering issuing their own stablecoins to capitalize on interest generated from reserves.
Rocky Path to Advancement
The GENIUS Act’s journey has not been smooth. An initial cloture vote in May failed to garner Democratic support, but a subsequent attempt succeeded with a 66-32 vote about a week later. The improved vote count suggests growing bipartisan acceptance of the need for stablecoin regulation.
The legislation is part of broader congressional efforts to establish comprehensive cryptocurrency regulation. On Tuesday, two House committees voted to advance the CLARITY Act, a separate market structure bill that could complement stablecoin legislation.
Next Steps
With cloture invoked, the Senate is positioned for a final vote on Monday unless leadership reaches a time agreement to expedite the process. The legislation’s fate in the House remains uncertain, but its strong Senate support and Trump administration backing suggest momentum for some form of stablecoin regulation in 2025.
The vote represents a watershed moment for cryptocurrency regulation in the United States, potentially positioning the country as a global leader in digital asset policy while addressing long-standing concerns about consumer protection and financial stability.
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