Senate Advances Cryptocurrency Regulation Bill Amid Democratic Concerns
Washington, D.C. – May 19, 2025
The U.S. Senate has taken a significant step forward in cryptocurrency regulation by advancing the GENIUS Act, aimed at creating a regulatory framework for stablecoins, a type of cryptocurrency pegged to the value of assets like the U.S. dollar. This move comes after a prior attempt to bring the legislation to a vote was overwhelmed by opposition from Democrats, primarily due to apprehensions related to the Trump family’s associations with the cryptocurrency industry.
The latest vote, which occurred on Monday night, passed with a strong bipartisan majority of 66-32. This vote was specifically to limit debate on the bill, thereby allowing the Senate to move toward its final passage. Senate Majority Leader John Thune (R-S.D.) criticized his Democratic colleagues for their earlier resistance, asserting that the bill reflected a bipartisan consensus and had undergone a fair and open legislative process.
"The bill reflects the bipartisan consensus on this issue, and it’s had an open and bipartisan process since the very beginning," Thune stated during his remarks on the Senate floor.
The genesis of the GENIUS Act can be traced back to its initial approval by the Senate Banking Committee, where it had garnered support from both parties. Since the failed vote earlier this month, negotiations resumed, leading to an increase in backing from some Democratic senators. Notably, Senator Mark Warner (D-Va.) expressed his support, describing the bill as a "meaningful step forward" while acknowledging that it was not without flaws.
"The stablecoin market has reached nearly $250 billion, and the U.S. cannot afford to keep standing on the sidelines," Warner remarked. "We need clear rules of the road to protect consumers, defend national security, and support responsible innovation."
Despite his support for the GENIUS Act, Warner voiced concerns regarding potential abuses by the Trump family, particularly in light of reports linking an Abu Dhabi-backed firm to a substantial investment in a Trump-affiliated crypto company, World Liberty Financial. He emphasized the need for transparency concerning such financial dealings, arguing that while the principles of blockchain technology are vital, oversight is equally essential in ensuring fair practices.
Opposition to the bill remains steadfast among some Democratic leaders, particularly Senator Elizabeth Warren (D-Mass.), who chairs the Senate Banking Committee. Warren has continually advocated for stronger anti-corruption measures within the proposed legislation, arguing that its current form could inadvertently endanger consumers and enable corrupt practices. During her address on Monday, she urged her colleagues to reject the bill as it stands, denouncing it as "worse than no bill at all."
"While a strong stablecoin bill is the best possible outcome, this weak bill is worse than no bill at all," she stated emphatically. "A bill that turbocharges the stablecoin market while facilitating the president’s corruption is worse than no bill at all."
The initial vote on the GENIUS Act earlier this month did not meet the 60-vote threshold required to advance, with unanimous opposition from Senate Democrats, along with Senators Rand Paul (R-Ky.) and Josh Hawley (R-Mo.), who cited concerns over excessive regulation and inadequate restrictions on tech companies in the cryptocurrency space, respectively.
Senator Bill Hagerty (R-Tenn.), who sponsored the legislation, highlighted the importance of establishing a comprehensive regulatory framework to provide clarity for investors and innovators alike, asserting that lack of regulations often drives technological advancement overseas. He called for bipartisan cooperation to enact the legislation, stating, "The question is can we get past the partisan politics and allow us to actually have a victory."
As the Senate moves closer to a final vote on the GENIUS Act, it remains to be seen how further discussions and negotiations will address the concerns raised by its critics while defining the future of the rapidly evolving cryptocurrency landscape in the United States.
For ongoing updates regarding this and other legislative measures, stay tuned to CBS News.
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