Bipartisan Momentum Builds Around Stablecoins
The U.S. Senate is poised to vote on the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS), a pivotal bill that may finally set federal guardrails around stablecoins. After weeks of committee debates, amendments, and political pressure, the bill cleared a cloture vote with 68 votes in favor — including 18 Democrats, signaling rare bipartisan unity.
Democrats had initially blocked the bill, citing concerns around foreign stablecoin issuers, money laundering loopholes, and Trump's crypto ties. But a set of late-stage revisions appears to have won over moderate lawmakers.
Key Requirements and Consumer Protections
If passed, the bill would require stablecoins to be fully backed by U.S. dollars or similarly liquid assets. For issuers with over $50 billion in market cap, annual third-party audits would become mandatory. It also sets clear bankruptcy provisions, granting holders of stablecoins “super-priority status” — a first-of-its-kind protection.
In addition, non-financial publicly traded companies like Meta and Amazon would be prohibited from issuing stablecoins unless they meet strict regulatory benchmarks concerning financial risk and consumer data privacy.
Trump Ties Spark Fresh Controversy
Perhaps the most controversial part of the bill involves indirect ties to Donald Trump’s family and their crypto business, World Liberty Financial, which recently launched a stablecoin now ranked fifth globally by size. Critics say the bill doesn’t go far enough in limiting presidential family influence.
To address those worries, the bill now bans sitting members of Congress and executive branch officials from participating in stablecoin issuance or owning more than $5,000 worth of such assets without disclosure.
House May Fold GENIUS Into Its Agenda
The House Financial Services Committee recently advanced its own stablecoin bill — the STABLE Act — but key differences remain. It’s unclear whether the House will push its version or simply take up GENIUS, now gaining strong bipartisan momentum in the Senate.
Schulp added that GENIUS is likely the more viable vehicle, stating
