U.S. senate officially approves ‘GENIUS Act’ to regulate crypto stablecoins

The U.S. Senate has officially approved the “Guiding and Establishing National Innovation for U.S. Stablecoins of 2025,” or the GENIUS Act. 

The major legislation provision has established the first broad federal framework for overseeing stablecoins. It constitutes a substantial leap toward mainstreaming digital assets.

The development came just a week after a failed procedural vote. All 49 Democratic senators blocked a motion to invoke cloture on the bill’s consideration, halting its initial path to the floor.

In the following days, reports of bipartisan efforts to revise the bill for another vote surfaced.

Key Democrats jumped back aboard the measure. Ruben Gallego (D-AZ), Mark Warner (D-VA), Lisa Blunt Rochester (D-PA), Kirsten Gillibrand (D-NY), and Angela Alsobrooks (D-MD)—all of whom voted against cloture on the GENIUS Act earlier this month—supported the measure tonight. Alsobrooks and Gillibrand initially co-sponsored the bill.

GENIUS Act gains momentum with bipartisan backing after procedural turnaround

The bill has garnered more than 60 votes and is now expected to quickly move forward to a full floor vote, potentially as soon as tomorrow, a source familiar with the matter said.

However, the bill still has to go through a vote in the House of Representatives and be signed into law by President Trump. If passed, the GENIUS Act will establish a legal basis for issuing stablecoins in the United States.

Sen. Bill Hagerty (R-TN) introduced the GENIUS Act. Sens. Cynthia Lummis (R-WY), Kirsten Gillibrand (D-NY), and Tim Scott (R-SC) served as co-sponsors of the legislation, which generated bipartisan momentum. The legislation seeks to lay down a clear regulatory framework for stablecoins that have grown substantially and now have an aggregate market cap exceeding $250 billion.

Just days ago, the bill failed to clear a key procedural vote. At the time, a confluence of political factors undermined support from pro-crypto Democrats, such as concerns about President Donald Trump’s conflicts of interest related to cryptocurrency.

Supporters hail the GENIUS Act as pro-dollar and innovation-driven

Under the GENIUS Act, stablecoin issuers must hold cash and/or Treasury securities reserves and comply with AML/ATF standards. The bill also authorizes the Federal Reserve to regulate stablecoins so that these digital assets function safely and securely.

Some members of Congress had criticized the GENIUS Act even as it won bipartisan backing. Sen. Elizabeth Warren (D-MA) was worried that the measure would be a boon to President Donald Trump, who could use it to expand his stablecoin venture, “USD1,” and his meme coin. She said it allowed Trump to regulate his own digital currency.

Supporters, however, viewed the GENIUS Act as a necessary step toward responsible innovation. Senator Bill Hagerty called it a “pro-growth” initiative and “the first-ever regulatory framework for payment stablecoins.”

Next week, the Senate will make history when we pass the GENIUS Act that establishes the first ever pro-growth regulatory framework for payment stablecoins. This bill will cement US dollar dominance, protect customers, increase demand for US treasuries, and ensure that innovation…

— Senator Bill Hagerty (@SenatorHagerty) May 16, 2025

Bo Hines, executive director of the President’s Council of Advisers for Digital Assets, also endorsed the bill.

The GENIUS Act is about securing the future of American finance.

Stablecoins strengthen U.S. dollar dominance, modernize our outdated payment rails, and give Americans faster, cheaper, and more transparent ways to move money.

Digital asset technology is the next generation of…

— Bo Hines (@BoHines) May 16, 2025

Justin Slaughter, VP of regulatory affairs at Paradigm and a Democratic staffer offered a pragmatic endorsement, saying this is “close to the best we can get for years and years.”

Amanda Tuminelli, executive director and chief legal officer of the DeFi Education Fund, urged bipartisan backing, arguing that clear rules around stablecoins would benefit consumers, small businesses, and the global standing of the U.S. dollar.

Echoing this sentiment, Ji Kim, acting CEO of the Crypto Council for Innovation, described the vote as “a critical step” toward regulatory clarity and said the legislation is vital for maintaining U.S. leadership in the digital finance space.