Key Takeaways:
U.S. Senate passes movement to advance the GENIUS Act with a 66-32 voteOver 15 Democrats, together with Cortez Masto and Adam Schiff, reversed their preliminary stanceThe GENIUS Act goals to control stablecoins—doubtlessly reshaping the crypto panorama
The principles for the U.S. cryptocurrency sector could also be about to vary in an enormous manner. Host of CryptoAmerica Eleanor Terrett just lately posted on her X that the Senate voted 66-32 on the night time of Might 20 to maneuver on with the GENIUS Act, an enormous legislation that offers with digital property and stablecoins. This procedural success lets the Senate formally begin speaking about and altering the invoice.
🚨JUST IN: Movement to invoke cloture on the movement to proceed to the consideration of the GENIUS Act has PASSED.
15+ Dems flipped their votes from no to sure together with @CortezMasto, @SenAdamSchiff, @MarkWarner, @SenRubenGallego, @SenatorWarnock and others. Senate Minority chief…
— Eleanor Terrett (@EleanorTerrett) Might 20, 2025
Learn Extra: Republican Senator Invoice Hagerty Introduces The GENIUS Act to Regulate Stablecoins
Key Senate Flip: Momentum Grows for Stablecoin Regulation
Greater than 15 Democratic senators who initially opposed the GENIUS Act modified their votes to assist shifting it ahead. Distinguished electoral reversals embody Senator Catherine Cortez Masto, Consultant Adam Schiff, Mark Warner, Ruben Gallego, and Raphael Warnock. Senate Minority Chief Chuck Schumer maintained his opposition, whereas Senator Josh Hawley was lacking from the vote.
The 66-32 cloture vote isn’t a remaining passage—it merely means the Senate will now formally debate the invoice’s contents. However the bipartisan assist alerts rising urgency in Washington to create a regulatory framework for digital property, particularly stablecoins.
What’s within the GENIUS Act—and Why Crypto Traders Are Watching
Stablecoins Take Heart Stage
The GENIUS Act outlines complete necessities for stablecoin issuers, together with:
Obligatory reserve backing (e.g., U.S. Treasury securities or money equivalents)Public transparency round reserve compositionCommon audits by unbiased third events
The worldwide cryptocurrency markets had a tough go of it in 2022 because of the failure of algorithmic stablecoins like TerraUSD; these rules are an try to stop a repeat of that.
This clear regulation has the potential to raise the stablecoin market within the eyes of regulators, institutional traders, and banks, in keeping with consultants. This might result in extra folks using them and fewer threat to the system as a complete.
A lobbyist for the fintech trade primarily based in Washington, D.C. stated, “It is a huge step ahead.” “Stablecoins are too huge to be caught in regulatory limbo.”
Learn Extra: Main Crypto Milestone: Mastercard Launches Stablecoin Funds in Partnership with MoonPay
The Politics Behind the Invoice: Pursuits and Dangers
Ties to Massive Tech and Campaigns Elevate Eyebrows
Whereas the GENIUS Act has drawn reward from trade advocates, it has additionally sparked questions concerning the involvement of main political figures and tech giants.
There are considerations about monetary ties between political figures—notably from each the Trump and Biden camps—and firms constructing digital cost infrastructure. Some lawmakers concern that with out sturdy moral boundaries, crypto-related coverage may favor well-connected insiders.
Skepticism persists concerning the permissibility of expertise firms resembling Meta or Block (beforehand Sq.) issuing their very own stablecoins within the absence of express federal regulation.
These points replicate earlier disputes, together with Meta’s discontinued Diem (Libra) initiative, which elicited worries from regulators on forex sovereignty and systemic hazards.
Market Influence: Crypto Neighborhood Reacts Cautiously
The crypto trade has responded with cautious optimism. Whereas the GENIUS Act has not but handed into legislation, clearing this procedural step is seen as an encouraging signal that U.S. lawmakers are shifting towards concrete digital asset regulation.
Josh Vlasto, spokesperson for CIFonX, stated in a press release:
“This motion, and ultimately passage of a stablecoin invoice, clears the trail for Congress to behave on the mandate of voters to go market construction laws which creates clear guidelines of the highway for digital property.”
🚨NEW: Fairshake was watching this vote carefully. Simply acquired a press release from Josh Vlasto, spokesperson for @CIFonX (non-profit related to the tremendous PAC) on tonight’s vote:
“We congratulate the Senate on at the moment’s vote. This motion, and ultimately passage of a stablecoin…
— Eleanor Terrett (@EleanorTerrett) Might 20, 2025
Because the legislation strikes towards debate, folks out there will carefully watch any adjustments that might have an effect on decentralized finance (DeFi), shopper privateness, and custody guidelines.
The GENIUS Act, which has assist from each events, is likely to be a turning level for cryptocurrency laws within the U.S. for a very long time to return, affecting investor belief, innovation, and compliance.
