Congress Set to Greenlight GENIUS Act—Stablecoin Legal Clarity Inches Closer

After months of regulatory limbo, Washington might finally give stablecoins a legal runway. The GENIUS Act—buried in last-minute legislative sausage-making—could pass as soon as Wednesday.

Why it matters: This isn't just another crypto bill. Passing the GENIUS framework would mark the first time US lawmakers formally acknowledge stablecoins as financial instruments rather than speculative gambles.

The fine print: Expect heavy compliance burdens for issuers (because when has DC ever made finance simple?). Tether maximalists won't like the transparency requirements, but Circle and Paxos are already polishing their compliance decks.

Bottom line: If this passes, it's a win for crypto pragmatists—and another case of legacy finance reluctantly accepting what the market already decided years ago.

Next Steps for the GENIUS Act 

Cloture, a procedural tool used to limit debate and force a final vote, allows 30 hours of focused Senate debate. Barring procedural delays, the chamber is expected to hold final votes on both the amendment and the underlying legislation by midweek. 

Senate insiders familiar with the matter told BeInCrypto that Wednesday is the likely window for final passage, assuming no objections derail the schedule.

The cloture filings from Thune mark the final stage in the Senate’s effort to advance the GENIUS Act. Under Senate rules, the 30-hour clock for debate began ticking immediately after cloture was invoked. 

So, this sets up a vote window by Wednesday. The bill requires 60 votes to overcome the filibuster and MOVE to a final vote.

NEW: @LeaderJohnThune has filed cloture on both the bipartisan amendment to GENIUS Act and the full bill. Votes on cloture will occur this week. Again, these votes will need 60 votes to move to final passage. https://t.co/uxFBV84Lel

This follows significant bipartisan cooperation led by Senators Bill Hagerty, Kirsten Gillibrand, Cynthia Lummis, and Chris Van Hollen. 

The Hagerty amendment (#2307) serves as a negotiated substitute, integrating several compromise provisions aimed at increasing support across both parties.

Key Amendments and Negotiations

Amendment #2307 reshaped the bill substantially to meet demands from both the banking sector and digital asset firms:

• State vs. Federal Oversight: The amendment allows stablecoin issuers under $10 billion in market cap to opt into a state-based regulatory regime. Issuers above that threshold would fall under a federal supervisory framework.
  
• Reserve and Transparency Requirements: Issuers must maintain 1:1 backing with US dollars or highly liquid short-term assets such as Treasury bills. Monthly attestations and public disclosures are mandated to ensure solvency and consumer protection.
  
• Ban on Interest-Yielding Stablecoins: In response to lobbying from the banking sector, the bill includes a ban on yield-generating stablecoins that might compete with traditional deposits. This was among the most debated provisions.
  
• Restrictions on Foreign Stablecoins: The amendment limits the circulation of foreign-issued stablecoins in the US market without equivalent regulatory oversight, citing national security concerns.
  
• Executive Restrictions: A clause restricts executive branch members, including the president, from issuing or endorsing a national stablecoin, reinforcing Congressional authority over monetary innovation.
  

The GENIUS Act is going to propel America’s payment system into the 21st century. Let’s get it done! pic.twitter.com/mIGpocZmUs

What Happens After the Vote?

If the cloture vote clears the 60-vote threshold—likely, given prior bipartisan momentum—the Senate will proceed to a final vote on the Hagerty substitute and then on the GENIUS Act in full.

Once passed, the bill heads to the House, where a parallel effort—the STABLE Act—is gaining traction. Lawmakers will need to reconcile both versions in conference before sending a unified bill to the President’s desk. 

Sources close to the House Financial Services Committee suggest alignment on most key principles.

However, details like custody rules and state preemption may still spark negotiations.