- Senate votes 68-30 to advance stablecoin oversight bill, setting up final vote.
- GENIUS Act mandates full backing and audits for large issuers of stablecoins.
- Trump’s advisors endorse the bill amid some Democratic concerns over loopholes and crypto ties.
The US Senate voted 68-30 to invoke cloture on the GENIUS Act, paving the way for a final vote on the bipartisan stablecoin regulation bill as early as Monday.
Officially named the Guiding and Establishing National Innovation for U.S. Stablecoins Act, the bill would require all stablecoins to be backed by US dollars or liquid equivalents, and enforce annual audits for issuers with over US$50 billion (AU$76.84 billion) in market capitalisation.
The Act is being led by Senator Tim Scott, who described it as a significant win and stressed the bipartisan nature of the initiative. Senate Majority Leader John Thune also supported the bill, stating it would help bring cryptocurrency into the mainstream.
The GENIUS Act has received backing from the Trump administration. In a policy statement, officials confirmed that if the bill were presented in its current form, Trump’s senior advisers would recommend he sign it into law.
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Critics Warn of Weak Consumer Protections
While the bill saw bipartisan support, some prominent Democrats, including Chuck Schumer and Elizabeth Warren, voted against it. Warren raised concerns about unresolved issues in the bill and expressed concern over President Donald Trump’s crypto-related ventures, including his association with World Liberty Financial and rewards tied to his memecoin.
The GENIUS Act is riddled with loopholes and contains weak safeguards for consumers, national security, and financial stability.
Democratic Senator Elizabeth WarrenIf passed by the Senate, the bill faces an uncertain future in the House of Representatives. A different bill regulating stablecoins – the Stablecoin Transparency and Accountability for a Better Ledger Economy Act – has cleared committee but not reached the house floor for a vote. Differences between the two bills include regulatory oversight and treatment of foreign issuers like Tether.
Despite its progress, the GENIUS Act remains controversial, with critics arguing that it lacks adequate consumer protections and creates opportunities for corruption tied to political influence in the crypto industry.
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