The revised bill prohibits senior executive branch officials from launching stablecoins but exempts the President and Vice President.
Written by: Token Dispatch, Shruti Lohar
Translated by: Block unicorn
Introduction
The U.S. Senate has revived landmark stablecoin legislation, with the GENIUS Act passing a key procedural vote on Monday evening, just two weeks after the bill appeared to have stalled in the Senate.
Senators advanced the bill by a vote of 66 to 32, easily surpassing the 60 votes needed to end debate and move to final consideration.
This unexpected turnaround reflects a shift in political dynamics.
Earlier this month, the bill failed due to the withdrawal of support from a key Democratic co-sponsor, dealing a blow to Republican leaders.
What Changed?
After two weeks of intense negotiations, the revised draft added new provisions addressing Democratic concerns over conflicts of interest, national security protections, and the potential involvement of large tech companies in the space.
Five key Democratic senators—Ruben Gallego (Arizona), Mark Warner (Virginia), Lisa Blunt Rochester (Pennsylvania), Kirsten Gillibrand (New York), and Angela Alsobrooks (Maryland)—changed their stance to support the bill after previously opposing it.
The initial failure of the bill stemmed partly from Democratic concerns over the growing ties between President Donald Trump and cryptocurrency enterprises. The Trump family has launched multiple crypto projects, including a stablecoin called USD1, which has quickly become the seventh-largest stablecoin by market capitalization.
"We cannot let this corruption blind us to the broader reality: blockchain technology is here to stay. If U.S. lawmakers do not shape it, others will—and not in a way that aligns with our interests or democratic values," Senator Mark Warner acknowledged these concerns before supporting the bill.
The revised bill prohibits senior executive branch officials from launching stablecoins but exempts the President and Vice President, only partially addressing concerns related to Trump.
What Does the Bill Contain?
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) will:
Require stablecoins to be fully backed by U.S. dollars or similar liquid assets
Mandate annual audits for issuers with a market capitalization exceeding $50 billion
Establish a framework for the legal issuance of stablecoins in the U.S.
Restrict algorithmic stablecoins
Include consumer protection provisions and anti-money laundering standards
Democratic members of the Senate Banking Committee released a critical staff analysis report on the latest draft of the GENIUS Act.
The report stated that the draft could be a potential roadmap for "Trump's crypto corruption" and increased control of digital currencies by large tech companies.
Staff called for further revisions, highlighting several key issues:
The bill does not prohibit Trump from profiting from his own stablecoin.
It allows Elon Musk's X platform to launch its own digital currency "X Money."
It expands existing loopholes for Tether, potentially facilitating criminals and terrorist organizations.
It lacks sufficient consumer protection and financial security measures.
Despite these warnings, the five Democratic senators who opposed the bill two weeks ago now support it.
Not everyone was convinced by the last-minute changes.
Senator Elizabeth Warren strongly criticized the bill before the vote.
"Trump and his family have made hundreds of millions from their crypto ventures, and if this bill passes, they will make hundreds of millions more through their stablecoin USD1. The GENIUS Act will accelerate Trump's corruption by expanding the stablecoin market," Warren argued.
The revival of the stablecoin bill comes at a time when industry lobbying efforts are intensifying.
According to Decrypt, Coinbase, which had previously been hesitant about independent stablecoin legislation, has ramped up its lobbying efforts in recent days, urging users to contact their senators through in-app notifications.
The cryptocurrency exchange's political action organization, Stand With Crypto, stated that if lawmakers vote against the bill, their ratings will be lowered—leveraging the $300 million raised last year for a super PAC supporting cryptocurrency.
If the Senate passes it, the GENIUS Act will also need approval from the House of Representatives before reaching Trump's desk.
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