- Advertisement -

The U.S. Senate moved closer to establishing federal oversight for stablecoins today, approving a procedural vote on the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act). The cloture motion passed 66-32, exceeding the 60-vote threshold needed to avoid a filibuster and advance the bill to the Senate floor for debate.

Introduced by Republican Senator Bill Hagerty, the GENIUS Act initially garnered bipartisan support, with co-sponsors including Senators Tim Scott (R-SC), Cynthia Lummis (R-WY), Kirsten Gillibrand (D-NY), and Angela Alsobrooks (D-MD).

The legislation aims to create a regulatory framework for stablecoins—digital assets pegged to fiat currencies like the U.S. dollar. In March, the Senate Banking Committee advanced the bill with cross-party backing, signaling rare consensus in cryptocurrency policy.

Recent revisions to the bill removed Democratic co-sponsors, leaving only Republican support. Sources familiar with the negotiations cite concerns among Democrats about ties between former President Donald Trump and World Liberty Financial (WLF), a stablecoin issuer linked to Trump associates. These apprehensions stalled momentum, despite earlier alignment on the need for clear stablecoin rules.

With the cloture motion approved, the Senate will now debate the GENIUS Act and consider amendments. The bill’s path remains uncertain, however, as Democratic withdrawals complicate efforts to secure the 60 votes required for final passage. Stablecoin issuers and crypto firms have lobbied for federal guidelines to preempt a patchwork of state regulations, arguing consistency is vital for innovation and consumer protection.

ETHNews analysts note that regulatory clarity could bolster confidence in stablecoins, which facilitate over $150 billion in daily transactions globally. The GENIUS Act proposes requirements for reserves, disclosures, and operational standards, aligning partially with recommendations from the Biden administration and the Federal Reserve.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.