Washington D.C. — A bill aimed at regulating cryptocurrency made progress in the Senate on Monday evening. This development followed a previous attempt to advance the legislation earlier this month that failed due to resistance from the Democratic party and worries about potential connections between the digital currency sector and the Trump family.
This landmark piece of legislation, formally titled the GENIUS Act, proposes a regulatory structure specifically for stablecoins. These are digital currencies whose value is linked to a reserve asset, such as the U.S. dollar. Although the Senate Banking Committee approved the bill in March with bipartisan backing, it faced a setback earlier this month when Senate Republican leaders first brought it to a floor vote. During the intervening weeks, Democratic support waned, fueled by concerns surrounding former President Trump and his family’s involvement in cryptocurrency business ventures.
The legislation advanced with a vote of 66-32, securing the support of some previously dissenting Democratic senators.
The Monday vote was a procedural measure to limit further debate on the bill, paving the way for a final vote on its passage.
Senate Majority Leader John Thune voiced his displeasure with Democrats for initially impeding the bill’s progress earlier this month. On Monday, he asserted, “This legislation reflects bipartisan agreement on this matter and has undergone an open and bipartisan process from its inception.”
Thune, representing South Dakota as a Republican, contended that Senate Democrats “inexplicably chose to block this legislation” in their earlier vote.
Since the previous vote failed to reach the required threshold, negotiations resumed. Prior to Monday’s procedural vote, Senator Mark Warner of Virginia publicly supported the bill, calling it “a meaningful step forward” while acknowledging that it’s “not perfect.”
“The stablecoin market is approaching $250 billion, and the U.S. can no longer afford to remain on the sidelines,” Warner stated. “We need well-defined regulations to protect consumers, safeguard national security, and foster responsible innovation.”
However, Warner also highlighted concerns shared by numerous senators regarding the Trump family’s use of cryptocurrency to bypass oversight, conceal questionable financial dealings, and personally profit at the expense of average Americans. This followed the announcement that an investment firm backed by Abu Dhabi would invest billions in World Liberty Financial, a crypto venture linked to the Trump family.
Warner emphasized that senators “have a duty to expose these abuses,” but cautioned against allowing such corruption to obscure the broader reality: that blockchain technology is here to stay.
Senator Elizabeth Warren of Massachusetts, the leading Democrat on the Senate Banking Committee, has been a vocal advocate for incorporating anti-corruption measures into the legislation. Warren has raised several concerns about the bill, arguing that it exposes consumers to risk and facilitates corruption. During a speech on the Senate floor Monday, Warren said her concerns have not been addressed and encouraged her colleagues to vote against the updated version.
“While a strong stablecoin bill is the ideal outcome, this deficient bill is worse than no bill at all,” Warren stated. “A bill that meaningfully strengthens oversight of the stablecoin market is worth enacting. A bill that turbocharges the stablecoin market while enabling the president’s corruption and undermining national security, financial stability, and consumer protection is worse than no bill at all.”
Earlier this month, the measure failed to secure the necessary 60 votes to advance. All Senate Democrats, along with Republicans Rand Paul of Kentucky and Josh Hawley of Missouri, voted against it. Paul expressed concerns about excessive regulation, while Hawley’s opposition stemmed partly from the bill’s failure to prohibit large tech companies from creating their own stablecoins.
Senator Bill Hagerty of Tennessee, the bill’s sponsor, defended the legislation on CNBC’s “Squawk Box” on Monday. He argued that the absence of a regulatory framework, which the bill aims to provide, creates uncertainty and drives innovative technology offshore. The Tennessee Republican urged that “this will fix it,” emphasizing the bill’s strong bipartisan support.
“We have broad policy agreement, Democrats and Republicans,” Hagerty said. “The question is, can we move beyond partisan politics and secure a victory?”