Stablecoin Bill Advances in Senate, Paving the Way for Financial Regulation

Stablecoin Bill Advances in Senate

The Senate voted Wednesday to advance legislation paving the way for a regulatory framework for payment stablecoins, bringing the crypto bill one step closer to a final vote in the upper chamber.

Seventeen Democrats voted alongside almost every Republican to end debate on an updated version of the GENIUS Act. This bill text emerged from extensive negotiations between Republicans and crypto-friendly Democrats last month, ahead of an earlier procedural vote on the Senate floor.

Vote Breakdown and Controversies

The vote breakdown resembled that of May, although Sen. Lisa Blunt Rochester (D-Del.) switched her opposition to the measure. Earlier, she supported the bill in both the Senate Banking Committee and last month's Senate floor vote.

Rochester expressed concerns regarding leadership's decision to skip an open amendment process on the GENIUS Act, hoping for further modifications.

Senate Majority Leader John Thune (R-S.D.) ultimately opted to proceed without the open amendment process due to controversial proposals threatening to undermine support for the legislation.

Key Concerns Raised

Democratic senators have raised alarms about provisions allowing elected officials, including President Trump, to profit from stablecoins. Sen. Jeff Merkley (D-Ore.) stated, “Where are those guardrails in this bill? They're completely, totally absent.”

Nevertheless, crypto-friendly Democrats urged their peers to support the bill despite its shortcomings, emphasizing the legislative intent to protect consumers and ensure the stability of the financial services industry.

The bill, if successful, will undergo several more votes before heading to the House. Sen. Cynthia Lummis (R-Wyo.) anticipates a final vote next week.