The US Senate voted 66–32 on May 19, 2025, to advance the GENIUS stablecoin bill, officially titled the Guiding and Establishing National Innovation for US Stablecoins Act. The motion to invoke cloture passed, moving the bill to full debate on the Senate floor.
The GENIUS stablecoin bill proposes a national regulatory structure for stablecoins, which are digital assets pegged to fiat currencies. The bill targets a market currently worth nearly $250 billion, dominated by USDT (Tether) and USDC (Circle).
The motion gained support from Democratic Senators Mark Warner, Adam Schiff, and Ruben Gallego, who previously opposed the bill. Their vote helped clear the procedural hurdle required for further discussion.
Trump Crypto Projects Raise Conflict Concerns
On May 8, Democratic lawmakers blocked the GENIUS stablecoin bill over concerns about Donald Trump’s crypto involvement. They cited possible conflicts of interest related to Trump’s financial stake in digital assets.
According to public records and market data from CoinGecko, Trump and his family have launched several crypto ventures. These include a memecoin project, a digital asset platform, a crypto mining business preparing for a public listing, and a stablecoin called USD1.
USD1 has become the seventh-largest stablecoin by market value, based on CoinGecko rankings. This growth raised concerns among senators about the bill’s implications for Trump’s financial interests.
Senator Elizabeth Warren said the legislation does not address what she called Trump’s “crypto corruption.” She added,
“Trump and his family have already pocketed hundreds of millions of dollars from his crypto ventures, and they stand to make hundreds of millions more from his stablecoin, USD1, if this bill passes.”
Despite this, Senator Mark Warner voted to move the bill forward. He stated,
“We cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay.”
GENIUS Stablecoin Bill Imposes Strict Rules on Issuers
Senator Bill Hagerty introduced the GENIUS stablecoin bill on Feb․ 4, 2025. The proposed legislationoutlines strict guidelines for stablecoin issuers. It requires all stablecoins to be fully backed by reserve assets.
Issuers must conduct regular security audits and obtain approval from either federal or state regulators. The bill allows only licensed entities to issue stablecoins under US law.
The law also bans algorithmic stablecoins, which rely on software code and market incentives rather than reserve assets. The restriction is intended to reduce systemic risk following past failures in the algorithmic stablecoin sector.
The GENIUS stablecoin bill builds on earlier policy drafts, including the Clarity for Payment Stablecoins Act submitted in October by former Representative Patrick McHenry.
May 26 Marked as Target for Final Vote
Senator Cynthia Lummis, a lead Republican backer of the GENIUS stablecoin bill, said on May 15 that lawmakers aim to pass the bill by Memorial Day, May 26.
She called the date a “fair target” and said the bill should receive full Senate attention before the holiday recess. The recent 66–32 vote reflects bipartisan momentum despite internal divisions over Trump-related controversies.
With debate set to continue this week, the Senate will now examine the bill’s language and enforcement mechanisms in greater detail.
