Proponents Claim U.S. Stablecoin Legislation May Pass Senate Next Week

Despite facing challenges recently, legislation in the U.S. aimed at regulating stablecoin issuers is poised for debate and potential approval next week, as noted by supporters of the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act.

Senator Hagerty, a Republican from Tennessee and the bill’s sponsor, expressed optimism. “Next week, the Senate will make history as we engage in debate and approve the GENIUS Act, which lays down the first supportive regulatory framework for payment stablecoins,” he remarked. These stablecoins, which are generally pegged to the dollar, play a crucial role in cryptocurrency trading, exemplified by platforms like Circle and Tether.

The most recent bill draft began to circulate this week, with changes made to address concerns from Democrats regarding consumer safety and national security. One of the modifications prohibits major public companies, such as Meta, from being authorized as issuers, although consumer advocates pointed out that private firms like Elon Musk’s platform X could still qualify.

Hagerty’s remarks were complemented by comments from Senator Kirsten Gillibrand, a Democrat from New York and another advocate for the legislation. Her tone reflected slightly less certainty about the bill’s fate, indicating the negotiations have encountered turbulence, which both lawmakers felt compelled to downplay publicly.

Gillibrand noted, “Stablecoins already hold significant value in the worldwide economy, and it’s imperative for the U.S. to legislate protective measures for consumers while fostering responsible innovation.” She highlighted robust consumer protections present in the updated draft and emphasized the bipartisan nature of the bill, expressing hope for its passage soon.

The Senate has witnessed considerable fluctuations around the bill in the last fortnight, most notably failing to secure enough votes to proceed to a formal debate. A crucial second vote is scheduled for Monday, requiring at least 60 votes, which will necessitate some Democrat support. Following this, the Senate plans to deliberate on the bill’s language, potentially making further amendments before a final vote.

Democrats have raised alarms over the risk of misuse and the participation of large corporations in the stablecoin market. The concern has been intensified by the interest in cryptocurrency endeavors linked to former President Donald Trump, including ventures like World Liberty Financial’s stablecoin project.

A prior iteration of this legislation had smoothly passed through the Senate Banking Committee with bipartisan backing, yet it encountered objections from some of the same Democrats who initially approved it. However, the current Senate session features a more crypto-friendly Democrat contingent than previously, which could facilitate progress for cryptocurrency-related legislation.

Meanwhile, the House of Representatives is drafting its standalone version of the bill, which will ultimately need to be reconciled with the Senate’s proposal before it can be enacted into law with Trump’s signature. Representative French Hill, a Republican chairing the House Financial Services Committee, acknowledged during Consensus 2025 in Toronto that Trump’s engagement with cryptocurrency has complicated legislative negotiations.