Stablecoin Regulation Bill Advances Smoothly Toward Full Senate Vote – UPI.com
June 11 (UPI) — The U.S. Senate has made significant progress on legislation aimed at establishing a regulatory framework for stablecoin payments.
The cloture motion, which concluded debate, was approved with a vote of 68-30, which included 18 Democrats. This paves the way for the final vote on the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS. Notably, two Republican senators, Rand Paul of Kentucky and Josh Hawley of Missouri, opposed the measure.
Stablecoins, which proponents claim are a form of cryptocurrency designed to maintain a stable value, are usually pegged to another asset, such as a fiat currency like the U.S. dollar or a commodity like gold. In contrast, other digital currencies like Bitcoin can experience extreme price volatility and are not encompassed by this Senate legislation.
To pass in the Senate, a minimum of 60 votes is required. On Tuesday, two House committees swiftly approved a bill to set a regulatory structure for digital assets, extending beyond just stablecoins, known as the CLARITY Act.
“Our goal is to integrate cryptocurrency into mainstream finance, and the GENIUS Act will facilitate that,” stated Senate Majority Leader John Thune of South Dakota, acknowledging that there remains “more work to be done” for Congress regarding digital assets, in reference to the House’s bill.
The legislation stipulates that stablecoins must be fully backed by U.S. dollars or similar liquid assets, mandates annual audits for issuers with a market capitalization exceeding $50 billion, and incorporates language pertaining to foreign issuance.
The cloture vote concluded an open amendment process. Democrats attempted to introduce a provision aimed at preventing President Donald Trump and other elected officials from profiting from stablecoins.
“Let me be clear, this didn’t occur by chance,” Senate Banking Committee Chair Tim Scott, R-S.C., declared on the Senate floor prior to the vote. “It happened because we took the lead. To those who said Washington couldn’t act, let’s prove them wrong.”
Senate Minority Leader Chuck Schumer of New York voted against the bill along with other notable Democrats.
“The GENIUS Act seeks to establish some guidelines for purchasing and selling a particular type of cryptocurrency known as stablecoins,” Sen. Jeff Merkley, D-Ore., commented on the Senate floor before casting his no vote.
“We need protections that ensure government officials aren’t soliciting people to buy their coins for personal or family gain,” he added. “Where are those protections in this bill? They are utterly absent.”
Some Democrats expressed concerns over foreign issuers, anti-money laundering regulations, potential corporate issuance of stablecoins, and Trump’s increasing involvement in crypto ventures.
Days before his inauguration on January 20, Trump and his wife, Melania, launched meme coins. Trump’s associated venture, World Liberty Financial, has recently introduced its stablecoin. Trump Media is aiming to establish a multi-billion dollar Bitcoin treasury, and American Bitcoin, a mining firm backed by his sons, Eric Trump and Donald Trump Jr., is preparing for a public offering through a merger with Gryphon.
“Having a president involved in this industry is extremely troubling, and while I would advocate for banning this activity, it doesn’t take away from the substantial work put into this legislation,” Sen. Kirsten Gillibrand, D-N.Y., who supported the bill, remarked.
“It in no way diminishes the efforts of the bipartisan group of senators committed to creating a law that protects consumers, safeguards our financial services sector, strengthens the dollar, and provides access to capital for those in need.”
Massachusetts Sen. Elizabeth Warren, who voted against the cloture, stated: “Through his cryptocurrency business, Trump has established a system to trade presidential favors like tariff exemptions, pardons, and government appointments for potentially hundreds of millions or even billions of dollars from foreign governments, billionaires, and large corporations. By advancing the GENIUS Act, the Senate is not only blessing this corruption but also actively facilitating its growth.”
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