Senate Advances Bipartisan Crypto Regulation Bill Amidst Ongoing Debate
Washington, D.C. – May 19, 2025 – In a significant development for cryptocurrency regulation, the Senate voted Monday to advance the GENIUS Act, marking a notable bipartisan effort within the chamber. The procedural vote resulted in a tally of 66-32, garnering support from both parties just two weeks after Senate Democrats united to block the bill.
The GENIUS Act: Overview
The GENIUS Act aims to establish the first regulatory framework specifically for issuers of stablecoins, which are digital tokens designed to maintain a stable value by being pegged to fiat currencies, such as the U.S. dollar. This regulatory effort addresses the increasing popularity and complexity of cryptocurrencies as the market develops.
The recent vote highlighted a collaborative effort involving 16 Democrats who joined the majority of Senate Republicans in support of the bill. Contrarily, two Republican senators—Rand Paul of Kentucky and Jerry Moran of Kansas—voted against advancing the measure.
Key Developments in Negotiations
The breakthrough in moving the GENIUS Act forward followed intense negotiations among a bipartisan group of senators. Participants included Republicans Bill Hagerty of Tennessee and Cynthia Lummis of Wyoming, alongside Democrats Mark Warner of Virginia, Kirsten Gillibrand of New York, Angela Alsobrooks of Maryland, and Ruben Gallego of Arizona.
These negotiations culminated in an amendment addressing several critical concerns raised by Democrats, specifically regarding consumer protection safeguards and regulations limiting tech companies’ issuance of stablecoins. Notably, the amendment also extends ethical standards to special government employees, which could temporarily impact notable tech figures such as Elon Musk and David Sacks.
Senate Majority Leader John Thune of South Dakota criticized the delay in moving forward with the legislation, referencing the previous decision to block the bill just days prior due to demands for stronger national security and anti-money laundering measures.
Controversies and Criticisms
Despite the advancement, not all senators are on board with the revisions. Prominent voices within the Democratic Party, like Senator Elizabeth Warren, expressed concerns about the bill’s underlying flaws. Warren labeled the current version of the GENIUS Act as insufficient, arguing it could potentially enable corrupt practices, particularly in light of ongoing scrutiny of former President Donald Trump’s affiliations with crypto ventures.
Additional legislative efforts are being proposed by Senate Democrats to impose stricter regulations on elected officials’ involvement with digital assets. Senator Michael Bennet of Colorado is expected to introduce the STABLE Act, which would prevent federal candidates from issuing or endorsing cryptocurrencies.
The Broader Impact and Next Steps
As discussions around the GENIUS Act continue, there remains uncertainty regarding its reception in the House of Representatives, where a different bill focused on regulating stablecoin issuers has been introduced. Cryptocurrency advocates emphasize the necessity for comprehensive legislation that clarifies the regulatory framework surrounding digital assets.
Kara Calvert, vice president for public policy at Coinbase, articulated the potential advantages for ordinary Americans, stating, “The winners, if Congress passes this bill, are Americans who want to make payments faster and easier to access. It’s transformational technology, so passing this bill is a win for them.”
As the Senate prepares for a Memorial Day recess, the timeline for a final vote on the GENIUS Act remains unclear, reflecting the complex interplay of bipartisan negotiations, regulatory imperatives, and ongoing political debates surrounding the future of cryptocurrency in the United States.
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