The United States Senate voted on May 19 to advance the much-anticipated GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act), marking a historic moment in the regulation of digital currencies. The bill, which lays out the first comprehensive federal framework for stablecoins, passed a key procedural vote with bipartisan support, clearing the way for full Senate debate in the coming days.
The 66–32 vote signals growing consensus in Washington on the need for clearer rules governing stablecoins—digital assets typically pegged to traditional currencies like the U.S. dollar. The GENIUS Act seeks to bring stability, transparency, and consumer protection to the rapidly growing crypto industry, which has faced mounting scrutiny amid global financial and technological shifts.
Under the GENIUS Act, stablecoin issuers would be required to hold full reserve backing for their coins, ensuring each token is supported by liquid assets. Only entities licensed at the state or federal level would be permitted to issue these digital currencies. Additionally, the bill calls for regular independent audits of stablecoin reserves and enforces strict compliance with anti-money laundering laws. Notably, the legislation also bans algorithmic stablecoins, which have been associated with several high-profile crypto collapses.
One of the bill’s most controversial provisions bars major tech giants—including Meta and Google—from issuing their own stablecoins. Lawmakers argue that allowing big tech firms into the currency market could threaten U.S. monetary sovereignty and consumer data privacy. The GENIUS Act also includes new oversight tools for foreign-based issuers seeking to operate in the U.S. financial system.
This progress follows a rocky journey for the bill. Earlier in May, the legislation failed to advance due to concerns over transparency and potential conflicts of interest. Some Democrats had withdrawn their support over revelations involving former President Donald Trump’s family and a $2 billion stablecoin venture backed by Abu Dhabi’s sovereign wealth fund. Critics, including Senator Elizabeth Warren, voiced strong opposition, warning that the bill did not go far enough in addressing “crypto corruption” and illicit financial flows.
Despite the earlier setback, bipartisan negotiations helped move the GENIUS Act forward. Republican Senator Cynthia Lummis, a key advocate of digital asset innovation, praised the Senate’s decision, calling it a vital step toward regulating crypto without stifling innovation. Democratic lawmakers, while cautious, acknowledged that federal intervention is necessary to protect consumers and stabilize digital markets.
The cryptocurrency industry has responded positively to the Senate’s action. Bitcoin surged 2.2% to $105,380 shortly after the vote, with other digital assets like Ethereum, XRP, and Solana also experiencing notable gains. Investors see the GENIUS Act as a sign of long-awaited regulatory clarity that could foster mainstream adoption of stablecoins and blockchain-based financial systems.
Although the Senate’s procedural vote is a major victory for supporters of crypto regulation, the GENIUS Act still faces several hurdles before becoming law. The full Senate must vote on the bill, and any final version must be reconciled with legislation from the House of Representatives. Lawmakers expect a final vote to take place before Memorial Day, May 26.
As Washington inches closer to regulating digital currencies, the GENIUS Act could reshape how stablecoins operate within the U.S. economy. If passed, it will mark a new era of accountability, security, and innovation in the world of crypto finance.
