Stablecoin regulation has gained momentum after President Donald Trump stressed its importance several times. The President and other government officials, such as David Sacks, believe that US Dollar-backed stablecoins hold the potential to increase dollar dominance across the globe.  Taking things forward, the US Senate advanced the long-awaited GENIUS Act

• The US Senate finally pushed the GENIUS Act stablecoin bill forward to final passage. 
• The bill failed to pass the cloture vote less than two weeks ago due to objections by Democrats. 

Stablecoin regulation has gained momentum after President Donald Trump stressed its importance several times. The President and other government officials, such as David Sacks, believe that US Dollar-backed stablecoins hold the potential to increase dollar dominance across the globe. 

Taking things forward, the US Senate advanced the long-awaited GENIUS Act bill today. The bill passed through one of the barriers of the Senate. It received 66 votes in favor and 32 votes against and cleared the way for further debate. 

Several democrats such as Ruben Gallego, John Fetterman, Catherine Cortez Masto, Mark Warner, Adam Schiff, and Maggie Hassan, voted in favor of the bill. Other Senate leaders, such as Chuck Schumer, Amy Klobuchar, Dick Durbin, and Elizabeth Warren, voted against the bill. 

Democrats Opposed GENIUS Act Citing President’s Crypto Ties 

The GENIUS Act bill focuses on regulating aspects of stablecoin issuance and operation. It received a severe backlash in the Senate from Democrats less than a few weeks ago. However, the same bill received majority votes Monday evening, which raises questions about how and why it happened. 

Several Democratic leaders opposed the GENIUS Act bill, raising concerns regarding President Trump’s connection to the crypto world. Trump started multiple crypto projects after becoming the President of the US in 2024. World Liberty Financial is one of his primary ventures, which recently announced the launch of its USD1 stablecoin. 

No Democratic leader supported the bill last week and pointed out several issues, along with Trump’s connection to crypto. Foreign issuers, anti-money laundering standards of the bill, corporate issuance of stablecoin, etc, are some of their concerns. That begs the question of how they voted in favor of it on Monday evening.

Lawmakers made several amendments to the GENIUS Act bill as Democrats pointed out several issues with it. After negotiating changes in the language of the bill, industry leaders were already anticipating an easy passage on Monday evening. However, most of the changes seem to be marginal and just enough to make it pass through the Senate. 

The advancement of the GENIUS Act bill passed one of the steps and entered the final passage. It is a major boost for stablecoin regulation, which in turn accelerates the entire crypto regulation.

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