Key Takeaways:
- Crypto industry leaders are actively pushing lawmakers to prioritize the GENIUS Act as a cornerstone for stablecoin regulation.
- The bill faces continued resistance from Senate Democrats, who warn it could enable corruption and fail to close key regulatory gaps.
- More than 50 proposed amendments, including unrelated measures, risk delaying or disrupting the bill’s progress.
- If passed by the Senate, the bill will move to the House for further debate, revision, and potential approval.
Crypto industry leaders are urging U.S. lawmakers to prioritize the GENIUS stablecoin act, describing it as a critical step toward clear and comprehensive stablecoin regulation, while Senate Democrats warn that the latest draft could open the door to corruption, regulatory gaps, and national security risks.
The bill, formally known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, is nearing a critical stage. After clearing an initial Senate vote on May 19, it now awaits full debate. Despite signs that lawmakers are prepared to advance it to the House, the growing risk of another delay, similar to last month’s setback, has crypto leaders on alert.
In an attempt to speed up the legislative process, four of the crypto industry’s most prominent policy groups, including the Blockchain Association, the Crypto Council for Innovation, the Digital Chamber, and the DeFi Education Fund, posted a joint statement Monday on X, urging Congress to stay focused on the GENIUS Act’s core goal: establishing a regulatory framework for stablecoins.
GENIUS’s Rocky Journey Toward Congress
The GENIUS Act faced a serious setback at the start of May, when nine Senate Democrats publicly withdrew their support, warning they would oppose the bill unless key regulatory concerns were addressed. They pointed to weak consumer protections, limited anti-money laundering measures, and a lack of national security guardrails as key gaps that required urgent fixes, calling the bill too risky in its original form.
However, things began to shift after mid-May. A round of last-minute bipartisan talks led to a compromise: an amendment was introduced to strengthen consumer protections, limit stablecoin issuance by tech companies, and expand ethics rules for government employees. Although Democrats had already agreed during the bipartisan talks to back the bill even without the changes, the revisions helped bring lawmakers back to the table.
On May 19, the U.S. Senate voted 66–32 to advance the GENIUS Act, marking a major step toward establishing the country’s first regulatory framework for stablecoins. Sixteen Democrats joined Republicans to push the bill past the 60-vote threshold, despite opposition from two GOP senators, Rand Paul and Jerry Moran.
What’s Next?
With procedural votes behind it, the GENIUS Act now awaits full debate on the Senate floor, where its fate remains uncertain. While industry leaders maintain pressure on lawmakers to pass the bill, calling it a necessary foundation for stablecoin regulation, lawmakers are still divided over unresolved concerns that could stall or reshape the legislation.
One major source of tension comes from ongoing amendments, with more than 50 filed, including proposals unrelated to digital assets, such as the Credit Card Competition Act. These additions risk derailing the bill or delaying its progress as lawmakers debate which revisions are worth adopting.
Meanwhile, Senate Democrats remain skeptical of the bill’s current safeguards. In particular, they cite lingering concerns over offshore stablecoin loopholes, insufficient consumer protections, and terms that could allow politically connected individuals to profit from regulation without proper ethical oversight.
If the bill passes the Senate, it will move to the House of Representatives, where another round of scrutiny is expected. At that stage, further revisions could be introduced, especially as lobbying intensifies from both crypto advocates and public interest groups.
Until then, the GENIUS Act hangs in a fragile balance, caught between growing industry pressure for clarity and a legislative environment still wary of unintended consequences.
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