Senate Advances Major Cryptocurrency Regulation Bill in Bipartisan Vote
By Kate Santaliz and Julie Tsirkin
Published May 19, 2025, 9:35 PM EDT
Washington, D.C. — In a significant move towards regulating the burgeoning cryptocurrency landscape, the U.S. Senate advanced the GENIUS Act on Monday through a bipartisan vote of 66-32. This legislative action comes just two weeks after the bill faced opposition and was blocked by a united front of Senate Democrats.
The GENIUS Act aims to create the first comprehensive regulatory framework for stablecoins, which are digital tokens linked to traditional fiat currencies like the U.S. dollar. The procedural vote saw 16 Democrats join with the majority of Senate Republicans, while only two Republicans, Senators Rand Paul of Kentucky and Jerry Moran of Kansas, opposed the bill.
To proceed, the bill needed to meet a 60-vote threshold, and given the Republican majority—holding three more seats than Democrats—bipartisan support proved crucial.
Negotiations Unlock Democratic Support
Support from Senate Democrats was facilitated by an agreement reached late last week among a group of bipartisan negotiators, including Senators Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Mark Warner (D-Va.), Kirsten Gillibrand (D-N.Y.), Angela Alsobrooks (D-Md.), and Ruben Gallego (D-Ariz.). This agreement focused on amendments addressing consumer protection, limitations on technology companies issuing stablecoins, and extending ethical standards to certain special government employees, which would momentarily affect high-profile figures such as Elon Musk.
Although Senate Republicans have not shown definitive support for the amendments, these changes are expected to broaden Democratic backing beyond the original negotiating group. In return for supporting the GENIUS Act, Democrats involved in its negotiation expressed their commitment to vote for the legislation, irrespective of the outcome of the amendment.
Past Opposition Revisited
The GENIUS Act faced significant opposition just two weeks prior, as Senate Democrats and two Republican Senators—Rand Paul and Josh Hawley—successfully blocked the previous attempt to advance it. They cited the need for stronger provisions regarding national security and anti-money laundering as a primary concern.
Senate Majority Leader John Thune (R-S.D.) criticized the delay in progressing the bill, lamenting that little had changed in the underlying legislation since its prior rejection. He remarked, “It’s really hard to understand why we needed to wait an additional 11 days for Democrats to finally agree to move,” suggesting the Senate would likely not finalize the bill before the upcoming Memorial Day recess.
Concerns Over Political Influence
Amid negotiations, the Trump family’s cryptocurrency dealings have raised eyebrows and contributed to Democratic unease. While stablecoins differ from meme coins—often deriving value from internet culture—the amended bill does not explicitly prohibit Trump or his family from their crypto activities. However, it includes a section designed to bar members of Congress and senior executive branch officials from issuing stablecoin products during their public service tenure.
Despite some Democrats expressing the need for stronger prohibitory measures, as voiced by Senator Elizabeth Warren (D-Mass.), others believe the time has come to legislate around the evolving cryptocurrency landscape. Warner articulated this stance, acknowledging the potential for corruption but emphasizing the necessity for the U.S. to be proactive in shaping cryptocurrency regulation. “If American lawmakers don’t shape it, others will — and not in ways that serve our interests or democratic values,” he stated.
Looking Ahead
Should the Senate successfully pass the GENIUS Act, the bill’s journey will continue in the House, where a different approach to regulating stablecoin issuers is currently being advocated. Cryptocurrency proponents assert that cohesive federal legislation is crucial for defining the treatment of digital assets and related securities.
Kara Calvert, vice president for public policy at cryptocurrency exchange Coinbase, expressed optimism about the bill’s potential impact, saying, “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 discussions continue and additional votes loom, the future of the GENIUS Act remains a pivotal topic in the ongoing evolution of America’s regulatory approach to cryptocurrency.
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