GENIUS Stablecoin Bill Clears Hurdle—One Step Closer to Becoming Law
Legislators just fast-tracked the controversial GENIUS stablecoin bill—because nothing says ’financial innovation’ like letting politicians draft crypto policy.
The vote sailed through committee with suspicious bipartisan support, proving even rivals can agree when there’s fresh regulatory turf to carve up. Next stop: full congressional showdown.
Meanwhile, TradFi banks are already lobbying to water it down. Some things never change.
Stablecoin Regulation Moves Forward
The GENIUS Act was introduced by Senator Bill Hagerty in February with the goal of regulating the $248 billion stablecoin market.
The legislation WOULD require stablecoins to be fully backed, undergo regular security audits, and receive approval from federal or state regulators. It restricts issuance to licensed entities and imposes limitations on algorithmic stablecoins and those without full backing.
“This groundbreaking, bipartisan legislation will bring America’s payment system into the 21st century,” said Senator Hagerty on X.
He added that it will ensure US dollar dominance and protect customers. He also predicted that “the demand for US Treasuries will balloon to the tune of more than $1 trillion, and innovation in the digital asset space will thrive in the United States going forward.”
“Digital assets are the future, and now we’re one step closer to ensuring America leads the way,” commented Senator Cynthia Lummis.
Tonight, the Senate moved forward on the GENIUS Act. This groundbreaking, bipartisan legislation will bring America’s payment system into the 21st century.
The GENIUS Act skyrockets the United States with a digital payment framework with the fastest rails possible. It will…
— Senator Bill Hagerty (@SenatorHagerty) May 20, 2025
Democratic senators had previously withdrawn support, citing concerns about potential conflicts with President Trump’s crypto investments and anti-money laundering concerns.
However, the legislation was subsequently revised to secure enough bipartisan support to MOVE forward. It now heads to the floor where the Senate will engage in a formal debate on the bill, discuss its merits, propose amendments, and express concerns.
Urgency Urged by Lummis
Senator Lummis indicated she hopes to complete this process by May 26 (Memorial Day), suggesting an accelerated timeline for the remaining procedural steps.
The stablecoin market is currently dominated by Tether, which has a commanding 61% market share with $151 billion USDT in circulation. Its closes rival, Circle, has a 24% market share with just over $60 billion USDC issued.
In early April, related legislation, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, was passed by the House Financial Services Committee.
