The U.S. Senate has moved forward with the GENIUS Act — a bill designed to regulate stablecoins — following a key vote on May 19 that passed 66-32.
The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS) had previously been stalled due to opposition from Democratic lawmakers, many of whom raised concerns about former President Donald Trump’s deep involvement in the crypto space.
The GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins Act, is a bipartisan bill introduced in the U.S. Senate aimed at creating a comprehensive regulatory framework for stablecoins. These are cryptocurrencies designed to maintain a fixed value, typically pegged to traditional currencies like the U.S. dollar. The bill mandates that all stablecoins must be fully backed by reserves, undergo regular security audits, and be issued only by licensed entities. It also places restrictions on algorithmic stablecoins, which use code-based mechanisms to maintain price stability without traditional collateral.
The GENIUS Act is seen as a major step toward legitimizing and securing the $250 billion stablecoin market, currently dominated by players like Tether (USDT) and Circle (USDC).
The shift came after several Democrats, including Senators Mark Warner, Adam Schiff, and Ruben Gallego, changed their stance and voted in favor of invoking cloture. This procedural move sets the stage for the bill to be debated on the Senate floor.
Senator Cynthia Lummis, a Republican and vocal supporter of the bill, said she believes May 26 — Memorial Day — is a “fair target” for final passage.
However, Senator Elizabeth Warren fiercely criticized the bill, claiming it overlooks Trump’s “blatant crypto corruption.” She pointed to Trump’s numerous crypto ventures, including a memecoin, a mining company, and a fast-growing stablecoin, USD1. “Trump and his family have already pocketed hundreds of millions... and they stand to make hundreds of millions more if this bill passes,” she warned.
As per Kraken's latest price feeds, the crypto market is showing strong momentum across the board. Bitcoin is trading at $105,125, up 2.3% in the past 24 hours, while Ethereum has gained 4.3%, trading at $2,509.59. Major altcoins like XRP, Solana, and BNB are also in the green, reflecting a broad market upswing.