After a Prolonged Political Battle, the Senate Successfully Advanced the Guiding and Establishing

After a prolonged political battle, the Senate successfully advanced the Guiding and Establishing

After a prolonged political battle and last-minute pleas from Democratic senators, the Senate successfully advanced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act of 2025 on Monday night.

If the landmark bill clears one final procedural vote and a vote on the bill itself, it will rewrite crypto history in America, establishing the first comprehensive framework for regulating stablecoins, a critical component of the burgeoning digital asset ecosystem.

The bill secured a 66-32 procedural vote, with several Democrats voting in favour following amendments to address their ethical concerns. It now heads back to the Senate floor for a final vote, which, if passed, will send the bill to the House. As this step only requires a simple majority, the supporters of the bill are optimistic about its passage.

Despite being introduced as a bipartisan bill, the GENIUS Act faced several political challenges. The Democrats protested alleged conflicts and corruption involving President Donald Trump and his family’s crypto empire.

As reported by Bloomberg earlier this month, the Senate failed to advance the stablecoin bill in a key procedural vote as Democratic senators asked for further amendments to the bill. Prominent leaders like Elizabeth Warren and Bernie Sanders criticized the bill, suggesting it could open the door for financial self-dealing by the President.

Once the full vote concludes after the debate on the Senate Floor, the GENIUS Act will move to the House of Representatives, where it will be reviewed and voted upon. The House has been working on its own stablecoin legislation, the STABLE Act, and experts believe that a reconciliation between the two bills may be necessary for optimal regulatory clarity.

Last week, Senator Bill Hagerty claimed the Senate would pass the bill, later adding that it was "likely" to happen on Monday. The bill has also gained support from key industry leaders, including the XRP lawyer John Deaton, Federal Reserve Chair Jerome Powell, Coin Center CEO Jerry Brito, SEC chair Paul Atkins, and Coinbase CEO Brian Armstrong.

The act, if passed, can establish a regulatory framework for stablecoins, which are a type of cryptocurrency pegged to stable assets like the U.S. dollar. The act will introduce guardrails to ensure the stability of these digital assets, while also providing an official validation for them.

Some of the key provisions of the GENIUS Act include:

• The bill would create a new regulatory regime for stablecoins, placing them under the supervision of the Federal Reserve.

• It would require stablecoin issuers to hold capital reserves and be subject to periodic stress tests.

• The bill would also impose new reporting requirements on stablecoin issuers, and it would give the Federal Reserve the authority to intervene in the market if necessary to maintain stability.

The U.S. Senate advancing the GENIUS Act is a milestone for the crypto industry as it offers the much-needed regulatory clarity and can be crucial for boosting investor confidence in the market.

Major stablecoin issuers like Circle (USDC) and Tether (USDT) have also expressed support for the act as it can help integrate digital assets into the traditional financial systems.

As the U.S. moves toward formalizing stablecoin regulations, it joins a growing list of countries seeking to capitalize on the booming crypto industry. Brazil, for instance, has proposed strict rules for stablecoin transfers as part of its new regulatory framework. El Salvador, on the other hand, recently boasted a notional gain of $357 million from its Bitcoin (BTC) Reserve.