In a high-stakes vote on May 20, 2025, the U.S. Senate advanced the GENIUS Act—a landmark bill aimed at regulating stablecoins—by a 66–32 margin, reigniting debate over the role of cryptocurrency in American financial policy and political influence.
The legislation, formally titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act, lays the foundation for a federal framework governing the issuance and oversight of dollar-pegged digital tokens.
The GENIUS Act requires stablecoin issuers to register with the Treasury Department, maintain one-to-one asset backing, and comply with stringent financial disclosures. It also authorizes the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to enforce anti-fraud and market integrity standards for the burgeoning sector.
While proponents—including Senators Patrick McHenry (R-NC) and Kirsten Gillibrand (D-NY)—hailed the bill as a step toward financial innovation and consumer protection, critics were quick to raise red flags about potential conflicts of interest.
Senator Elizabeth Warren (D-MA) voted against the bill, warning that the legislation could directly benefit President Trump’s family, which recently launched the USD1 stablecoin through a private firm, World Liberty Financial. “We are opening the doors of the U.S. financial system to self-dealing and deregulated instability,” Warren stated. She also questioned the influence of industry lobbying in drafting the bill’s provisions.
Despite the controversy, the Senate’s procedural vote enables the bill to proceed to the House of Representatives, where a parallel proposal—the STABLE Act—is also under review. Lawmakers will need to reconcile the two bills before a unified version can reach the President’s desk.
The White House has not released an official statement on the Senate vote. However, sources close to the Trump administration have indicated broad support for clearer crypto regulation, particularly around the stablecoin market, which has grown rapidly but remains largely unregulated at the federal level.
Critics continue to press for ethics inquiries into the Trump family’s involvement in the cryptocurrency sector, arguing that any legislation advancing under his administration must be held to strict standards of transparency and accountability.
The GENIUS Act is the first federal bill of its kind to gain this level of traction, and its progress marks a pivotal moment for the U.S. digital currency landscape. The coming weeks are expected to see intense negotiations in Congress as lawmakers attempt to shape the final contours of stablecoin regulation in America.
