The U.S. Senate is approaching a critical moment as it prepares for what could be the final opportunity to pass the GENIUS Act — a landmark bill aimed at regulating stablecoins. The bill failed to advance in a recent vote, heightening tensions in Washington as lawmakers face mounting pressure to act.
What is the GENIUS Act?
Formally titled the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, the legislation was introduced in February 2025 by Senator Bill Hagerty with bipartisan backing. Its primary goal is to establish a clear regulatory framework for stablecoins — digital currencies pegged to real-world assets like the U.S. dollar to maintain a stable value.
Key provisions of the bill mandate that stablecoin issuers:
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Fully back their coins with cash or secure investments.
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Provide monthly reports on their reserves.
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Face criminal penalties for misrepresenting reserve holdings.
Despite bipartisan support, the GENIUS Act failed to garner enough votes to proceed to cloture — the critical stage before final debate.
The Senate’s Last Chance
FOX journalist Eleanor Terrett highlighted the bill’s precarious position, noting that under Senate Rule 13, the upcoming vote will be the final attempt to advance the GENIUS Act in its current form. If the bill fails again or if Senator John Thune’s motion to reconsider is rejected, it will be effectively dead unless unanimous consent allows it to be revisited — an outcome deemed highly improbable.
Partisan Blame Game Intensifies
Senator Tim Scott, Republican chairman of the Senate Banking Committee, condemned the bill’s recent failure, blaming partisan obstruction. In a May 8 speech, Scott remarked, “We witnessed a disappointing display of political gamesmanship that puts partisan politics above policy, and obstruction above innovation.” He stressed that the GENIUS Act was crafted as a bipartisan initiative designed to strengthen the U.S. economy.
Trump’s Crypto Ties Spark Democratic Opposition
The bill’s path has been further complicated by concerns over former President Donald Trump’s connections to stablecoin ventures. Democratic lawmakers have raised alarms over a $2 billion deal between Abu Dhabi-based MGX and Binance involving a stablecoin called USD1, reportedly linked to Trump’s business interests.
Massachusetts Senator Elizabeth Warren criticized the bill, saying it “shouldn’t pass to facilitate this kind of corruption.” The controversy has led several Democrats, who initially supported the bill in committee, to withdraw their backing.
Representative Maxine Waters also voiced strong opposition, declaring, “If there is no effort to block the President of the United States of America from owning his stablecoin business, I will never be able to agree on supporting this bill.”
Next Vote Date Remains Uncertain
As of now, no date has been set for the Senate’s next vote on the GENIUS Act. With political tensions escalating and bipartisan support fracturing, the bill’s future hangs in the balance.
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