Senate Advances Stablecoin Bill as Democrats Shift Stance on GENIUS Act

Highlights:

• The Senate has advanced the GENIUS Act after Democrats shifted their positions during the latest stablecoin bill vote.
• The GENIUS Act sets clear rules for stablecoin issuers and blocks the use of algorithmic stablecoins.
• Concerns remain over Trump links and foreign access as the Senate prepares for a final vote on the bill.

The United States Senate moved ahead on May 19 by passing a key vote related to stablecoins. Lawmakers voted 66 to 32 in favor of advancing the GENIUS Act. The bill had previously stalled after an earlier vote failed due to opposition from Senate Democrats. Their attention centered on whether Donald Trump was connected to crypto activities.

This is a big first step towards passage of the GENIUS Act, and sixteen Democrats ended up changing their vote to support the bill.

As I mentioned before, the legislation will now move to the debate and amendment process on the Senate floor, which will begin tomorrow night or… https://t.co/Z1OP2s9Tm8

— Eleanor Terrett (@EleanorTerrett) May 20, 2025

A number of Democrats decided to change their original stance in the most recent vote. Mark Warner from Virginia, Ruben Gallego from Arizona, and Adam Schiff from California all supported the proposal. With their backing, the Senate was able to discuss and debate the bill in full. Senator Cynthia Lummis mentioned that a final vote could take place by May 26.

Senate Advances Stablecoin Bill as Democrats Shift Stance

The GENIUS Act outlines rules for issuing payment stablecoins in the United States. It includes conditions like audits, full reserve backing, and approval from government agencies. The bill blocks the use of algorithmic stablecoins and limits who can issue them.

Senator Bill Hagerty introduced the bill on February 4 based on earlier drafts. It closely follows proposals such as one by Patrick McHenry in October. Attention around the bill grew as Trump’s family began launching crypto-related projects. One of them, USD1, is already the seventh-largest stablecoin by market value.

Senator Elizabeth Warren expressed strong concerns about the bill’s current language. She warned that the bill does not prevent Trump and his relatives from profiting through crypto. She added that they might gain even more if the bill becomes law. Senator Warner also voiced worries but said ignoring blockchain policies would pose bigger risks.

Ji Kim from the Crypto Council for Innovation welcomed the bill’s progress. Stand With Crypto also encouraged lawmakers to pass the measure. Coinbase and other crypto groups increased lobbying after the bill’s earlier failure. Their efforts helped shift Senate support and led to the May 19 vote.

More Debate Awaits Ahead

A memo from Senate Banking Committee staff raised further issues on May 19. It said the updated bill still allows Trump-linked entities like World Liberty Financial to benefit. It also warned that foreign stablecoin issuers might enter the U.S. market using this bill. This could increase the flow of illegal money into the system.

🚨NEW: Senate Banking Committee Democrats just dropped a scathing staff analysis of the latest GENIUS Act draft ahead of this evening’s cloture vote.

Staffers describe the latest GENIUS Act draft as a blueprint for ‘Trump crypto corruption’ and Big Tech dominance over digital… pic.twitter.com/Gqd2LxFGx1

— Eleanor Terrett (@EleanorTerrett) May 19, 2025

The memo pointed out risks involving private firms like Elon Musk’s X becoming stablecoin issuers. They pointed out that this change might weaken long-standing financial controls. The memo also highlighted threats to consumer safety and national security. It also added that the recent updates in the bill do not solve these issues.

Despite criticism from senators such as Warren, support for the GENIUS Act continued to grow. Senator Hagerty described the bill as a tool for fostering digital growth. In addition, Amanda Tuminelli from the DeFi Education Fund asked for strong bipartisan support from the senators as the bill moves forward.

Tonight, the Senate moved forward on the GENIUS Act. This groundbreaking, bipartisan legislation will bring America’s payment system into the 21st century.

The GENIUS Act skyrockets the United States with a digital payment framework with the fastest rails possible. It will…

— Senator Bill Hagerty (@SenatorHagerty) May 20, 2025

If the Senate approves the bill after debate, it will move to the House for another vote. Lawmakers there will decide whether to send it to the president. Once signed into law, the GENIUS Act will establish national rules for stablecoin issuers.