US Senate approves GENIUS Act stablecoin bill

Eighteen Democrats voted in favour, while two Republicans opposed the measure. The bill now proceeds to the House of Representatives for further consideration. 

A key provision of the GENIUS Act establishes a federal regulatory framework for stablecoins, an area of the cryptocurrency sector that has grown rapidly in recent years but remained largely unregulated. While there is broad consensus in Congress that oversight is needed, political disagreements have slowed progress.

Ethics concerns persist among lawmakers 

Though the GENIUS Act has received bipartisan support, some Democratic lawmakers remain critical of its contents, arguing that it lacks sufficient ethical safeguards. Certain senators have raised concerns that the bill may enable misuse by public officials, particularly in the context of past controversies surrounding cryptocurrency involvement by President Donald Trump. 

Officials from the Democratic side have maintained that unless the bill imposes clearer ethical standards, it could weaken accountability. One Democratic senator previously warned that passing legislation that appears to exempt sitting presidents from cryptocurrency oversight could open the door to misuse of digital asset systems for personal or political gain. 

Republican sponsors of the bill, however, have rejected these concerns, stating that the legislation is designed to be neutral in scope and function. A representative from the Republican side noted that the bill does not favour any specific individual or company. According to them, the primary goal is to establish a coherent path forward for US digital payments infrastructure, safeguard consumers, and ensure the dollar remains dominant in global financial markets. 

Initial efforts to advance the legislation had stalled when Democrats withdrew support over ethical reservations. Several revisions and renewed negotiations resulted in a modified version that satisfied enough lawmakers to move the bill through the Senate.