GENIUS Stablecoin Legislation Advances to Next Voting Phase
The National Innovation for US Stablecoins Act, or GENIUS Act, was approved by a Senate vote of 66-32 on May 20.
“The motion to end debate and proceed with the GENIUS Act has been approved,” announced Fox’s Eleanor Terrett.
She noted that over 15 Democrats changed their votes from opposing to supporting the bill, although Senate Minority Leader Chuck Schumer maintained his opposition.
This successful vote has allowed the bill to pass a significant procedural challenge after Democratic senators initially halted it earlier in the month. The vote to limit debate is a procedural requirement that necessitates a super-majority, allowing the bill to advance to discussion on the Senate floor.
BREAKING: GENIUS BILL PASSES THROUGH CLOTURE VOTE WITH 60 VOTES
— Dennis Porter (@Dennis_Porter_)
Advancements in Stablecoin Oversight
This legislation mandates that stablecoins be fully collateralized, undergo regular safety audits, and attain approval from either federal or state authorities. It limits issuance to licensed entities and sets restrictions on algorithmic stablecoins and those lacking full backing.
“This pioneering, bipartisan act will modernize America’s payment system,” stated Senator Hagerty.
He added that the measure will bolster the dominance of the US dollar and safeguard consumers. He forecasted that “demand for US Treasuries will surge, potentially exceeding $1 trillion, fostering innovation in the digital asset realm within the US.”
“The future lies in digital assets, and we’re now closer to establishing America’s leadership in this field,” remarked Senator Cynthia Lummis.
Tonight, the Senate advanced the GENIUS Act. This transformative, bipartisan bill will propel America’s payment system into a new era.
The GENIUS Act is set to provide the US with a cutting-edge digital payment framework. It will…
— Senator Bill Hagerty (@SenatorHagerty)
Previously, some Democratic senators had retracted their support due to worries about potential conflicts tied to President Trump’s cryptocurrency investments and concerns regarding anti-money laundering measures.
However, after revisions to the legislation, it garnered sufficient bipartisan backing to progress. The bill is now slated for formal discussion in the Senate, where its advantages will be deliberated, amendments proposed, and concerns raised.
Lummis Calls for Expedited Action
Senator Lummis expressed her desire to finalize this process by May 26 (Memorial Day), indicating a quicker timeline for the remaining steps.
The stablecoin market is currently led by Tether, which claims a 61% market share with $151 billion USDT in circulation. Its nearest competitor, Circle, holds a 24% market share with just over $60 billion USDC issued.
In early April, the House Financial Services Committee passed related legislation known as the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act.
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