In a historic move for digital finance regulation, the U.S. Senate has advanced the GENIUS Act—a landmark cryptocurrency bill that would set the first federal standards for stablecoins—despite internal divisions among Democrats and concerns about presidential entanglement in the crypto sector.
The bipartisan bill, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, passed a key procedural vote in the Senate on Monday with a 66–32 margin. This paves the way for full floor debate and a final vote expected later this week.
What the Bill Covers
If enacted, the GENIUS Act would introduce sweeping reforms in the issuance and oversight of stablecoins, a class of cryptocurrencies designed to maintain a fixed value—often pegged to the U.S. dollar.
The legislation requires issuers to maintain a one-to-one reserve of liquid assets, enforce robust risk management standards, and comply with anti-money laundering (AML) and counter-terrorism financing (CTF) protocols.
Key provisions of the bill also:
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Ban foreign-issued stablecoins unless they conform to U.S. regulations;
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Prohibit major tech platforms from launching stablecoins that track users’ financial behavior;
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Bar lawmakers and executive officials from issuing personal stablecoins—except for the sitting president and vice president.
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Democratic Divide
Despite the bill’s strong bipartisan support, it has revealed a stark divide within the Democratic caucus.
Moderates like Senators Mark Warner and Kirsten Gillibrand backed the bill, citing its improved consumer protections and the urgency of creating a regulatory framework in a fast-moving digital economy.
However, progressive Democrats led by Senator Elizabeth Warren have raised red flags over potential conflicts of interest—particularly the bill’s possible benefits to former President Donald Trump, whose family-backed venture recently launched a stablecoin named USD1.
“This bill hands the keys of crypto finance to someone with clear financial stakes and a history of self-dealing,” Warren said in a statement. “We need strong ethics rules, not loopholes for presidential profiteering.”
Trump’s Digital Coin in the Spotlight
The controversy intensified as reports emerged linking Trump’s World Liberty Financial to lobbying efforts that favored looser language around executive branch restrictions.
Critics argue that allowing a sitting or former president to issue digital assets without tighter scrutiny could set a dangerous precedent.
Supporters of the bill pushed back, arguing that the U.S. risks falling behind countries like the UK and Singapore, which have already established clear crypto regulations.
“This isn’t about Trump; it’s about financial stability and American innovation,” said Senator Cynthia Lummis (R-WY), a leading pro-crypto voice in Congress. “Stablecoins are here to stay, and we need to lead—not lag—on regulation.”
What’s Next?
With Senate approval likely, the GENIUS Act will head to the House of Representatives, where it is expected to receive a warm reception given recent bipartisan appetite for digital finance legislation.
Should the bill pass, it would mark the most comprehensive crypto policy to date in the United States, reshaping the landscape for investors, developers, and financial institutions.
The bill also sets the stage for a broader political battle over digital currency policy in the run-up to the 2026 midterms, as crypto continues to evolve from a fringe issue into a central pillar of economic and regulatory debate.
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