US Senate Advances Stablecoin Bill Despite Trump Crypto Concerns

The United States Senate voted on May 19 to advance the long-awaited GENIUS Act — a bill designed to establish clear federal rules for stablecoin market. The 66-32 vote signals bipartisan support for regulating a market currently valued at nearly $250 billion, though the bill’s path has been anything but smooth. The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) had initially stalled earlier this month when several Democratic senators withdrew support over concerns related to former President Donald Trump’s expanding crypto ventures. These included worries over conflicts of interest and weak anti-money laundering (AML) provisions. However, senators Mark Warner, Adam Schiff, and Ruben Gallego reversed their positions in the latest procedural vote, helping the bill cross the cloture threshold and move toward debate on the Senate floor. Debate Rekindled Over Trump’s Crypto Ties The bill’s resurgence follows renewed debate about the role of Trump and his family in the cryptocurrency industry. Senator Elizabeth Warren, a vocal critic of the digital asset space, strongly opposed the bill, claiming it does little to prevent Trump from profiting through what she described as “blatant crypto corruption.” “Trump and his family have already pocketed hundreds of millions of dollars from his crypto ventures,” Warren said ahead of the vote. “And they stand to make hundreds of millions more from his stablecoin, USD1, if this bill passes.” According to CoinGecko, the Trump-backed USD1 stablecoin has rapidly grown to become the seventh-largest by market value. The former president’s crypto empire also includes a memecoin project, a crypto platform, and a mining firm preparing to go public. Despite these concerns, Senator Warner noted that the United States could no longer afford to be a passive observer in the global race to regulate blockchain technology. “If American lawmakers don’t shape it, others will — and not in ways that serve our interests or democratic values,” he said. GENIUS Act Sets Regulatory Framework for Stablecoin Market Introduced by Republican Senator Bill Hagerty on February 4, the GENIUS Act aims to bring clarity to the issuance and oversight of stablecoin market, a class of digital assets pegged to fiat currencies like the U.S. dollar. The bill mandates that stablecoins be fully backed by reserves, undergo routine audits, and be issued only by federally or state-licensed entities. Algorithmic stablecoins — often criticized for their instability — are explicitly restricted. Hagerty’s proposal builds on previous efforts like former Representative Patrick McHenry’s Clarity for Payment Stablecoins Act, reinforcing a regulatory approach designed to support innovation while minimizing systemic risks. Senator Cynthia Lummis, a key backer of the bill, said she is optimistic it could pass by Memorial Day, May 26. The post US Senate Advances Stablecoin Bill Despite Trump Crypto Concerns appeared first on TheCoinrise.com .

Source: The Coin Rise