US Senate advances stablecoin bill despite party divisions

The bill, formally titled the GENIUS Act, represents an early attempt to establish federal oversight for this sector of the digital asset market. 

The proposal moved forward following renewed negotiations over the weekend that produced a revised draft. While over a dozen Senate Democrats supported the bill, leadership within the party, including senior figures, remained opposed and voted against the motion to proceed. The updated version of the legislation was enough to gain the backing of some Democratic lawmakers who had previously resisted the measure.

Ongoing division among Democrats 

According to CNN, despite bipartisan support, the Democratic segment remains divided. Some members maintain that regulatory clarity is urgently needed, even if the legislation is not fully comprehensive. Others have raised concerns over its scope and effectiveness. A Senate Banking Committee official from the Democratic side criticised the bill as inadequate, stating during floor remarks that an ineffective regulatory framework could do more harm than having no legislation in place at all. 

Republican and Democratic lawmakers had initially reached a rare bipartisan consensus on the need for stablecoin regulation, but forward movement was stalled earlier this month due to internal party disagreements. The delay was partially attributed to concerns surrounding cryptocurrency-related business activities linked to President Donald Trump. 

A representative from the bill’s Democratic co-sponsors noted the growing significance of stablecoins in global markets and emphasised the importance of balancing consumer protections with the ability to foster responsible innovation. The official argued that the legislation could help provide clearer rules for the sector while reinforcing the position of the USD. 

One Democratic senator, who had earlier opposed the bill on the grounds that it was incomplete, reversed course. In a statement, the senator acknowledged ongoing concerns about potential misuse of cryptocurrency platforms, particularly in connection to Trump family activities, but described the legislation as a necessary initial step toward stronger oversight.