Senators to Hold Another Vote Monday Night on Advancing the GENIUS Act

Renewed effort follows a failed vote earlier this month after Democrats raised concerns about the bill's potential loopholes.

Senators are expected to hold another vote Monday night on advancing the GENIUS Act, the bill that would set the first U.S. rules for stablecoins, according to a report from Bloomberg.

The renewed effort follows a failed vote earlier this month after Democrats raised concerns about the bill’s potential loopholes. The updated bill, which will be presented by Senators Bill Hagerty (R-TN) and Maggie Hassan (D-NH), includes language that would limit Big Tech firms like Meta (META) from issuing stablecoins without special approval.

However, the revision has not satisfied key progressives, including Senator Elizabeth Warren (D-MA), who argues that the legislation still enables Trump-based crypto corruption.

Her concern centers on the Trump family’s ties to World Liberty Financial, which has launched a dollar-backed stablecoin, USD1. The former president’s son, Donald Trump Jr., serves on the company’s advisory board.

Stablecoin legislation

The GENIUS Act would require stablecoin issuers to hold reserves in safe assets such as Treasury bills, comply with anti-money-laundering laws, and ensure consumer priority in the event of bankruptcy. It also aims to prevent tech giants like Meta from entering the stablecoin market without specific approval.

Stablecoins like Tether’s USDT (USDT) and Circle’s USDC (USDC) underpin much of the $3.3 trillion crypto trading market. They are designed to maintain a stable value, typically pegged to the dollar, in contrast to volatile cryptocurrencies like Bitcoin (BTC).

Some Democrats remain uneasy about the potential for stablecoins to become gateways for tech giants into banking, while crypto advocates argue the bill is a crucial first step in modernizing U.S. financial infrastructure.

Industry groups, including the Chamber of Commerce and the deHaas Center for Constitutional Law at Harvard Law School, have voiced support for the bill's passage.

The bill's passage in the Senate would send it to the House of Representatives, where it is expected to have an easier path. Still, even if the Senate clears this hurdle, broader crypto regulation may face stronger headwinds amid growing scrutiny of former President Trump’s financial ties to the sector.

Earlier this month, the Senate failed to pass the bill after Democrats, including Senator Bob Menendez (D-NJ), voted against it due to concerns about the bill's scope and potential to grant Trump-linked firms advantages in the stablecoin market.