The U.S. Senate will vote on the GENIUS Act on May 19, 2025. This bipartisan bill, co-sponsored by Senator Bill Hagerty and Senator Kirsten Gillibrand, aims to regulate payment stablecoins in the United States.
Despite facing obstacles, Senator Hagerty remains optimistic. The GENIUS Act fell short of the 60-vote threshold on May 8, with only 48 senators in favor and 49 opposed. Concerns from Democrats included weak anti-money laundering measures, lack of oversight on foreign-issued stablecoins, and inadequate consumer protection mechanisms.
Bipartisan negotiations have resulted in key amendments to the bill. The revised version includes enhanced customer safeguards, clearer bankruptcy protection for stablecoin holders, and ethical restrictions preventing Big Tech firms like Meta and Google, as well as individuals like Elon Musk, from issuing stablecoins.
The stablecoin market is currently valued at over $246 billion globally, with Tether’s USDT and Circle’s USDC leading the way. These tokens, pegged to fiat currency, play a crucial role for traders, institutions, and fintech innovators.
Senator Hagerty argues that the GENIUS Act would solidify the U.S. dollar’s dominance in the digital economy, increase demand for U.S. Treasuries, and encourage fintech innovation to remain within U.S. borders.
For the GENIUS Act to pass, the Senate needs 60 votes. Currently, Democrats hold 51 seats, while Republicans hold 49 seats. Bipartisan cooperation will be key to securing the necessary support for this potentially historic regulatory milestone in the crypto industry.
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