The U.S. Senate has successfully advanced the GENIUS Act, a bill aimed at regulating stablecoins, after securing necessary votes. The vote took place on May 20, 2025, in Washington, D.C.
The progression of the GENIUS Act marks a pivotal step in establishing regulatory clarity for stablecoins in the United States, potentially influencing both institutional participation and future legislative efforts in the digital currency space.
GENIUS Act Gains Traction with Republican Support
The GENIUS Act, sponsored by Senator Bill Hagerty, seeks to lay out a national framework for stablecoin operations. Initial co-sponsors included bipartisan figures, yet Democratic backing waned, prompting significant Republican support in its current form.
Significant players include Senators Cynthia Lummis and Tim Scott. The bill, formerly supported by both parties, faced changes after Democrats withdrew. This legislation aims to clarify U.S. regulatory roles concerning stablecoins’ issuance and compliance.
The Senate advanced the GENIUS Act after securing the 60 votes needed to proceed. Bipartisan support for the stablecoin regulation bill previously dissolved due to concerns about conflicts of interest with President Trump. – Senator Bill Hagerty
Cloture Vote Signals Confidence in Stablecoin Market
The successful cloture vote signifies progress toward regulatory clarity, expected to boost confidence in the stablecoin market. The absence of immediate financial shifts suggests measured institutional anticipation of forthcoming compliance standards.
Experts anticipate the GENIUS Act will foster structured interactions within the crypto market. Historical data suggests regulatory clarity typically encourages market growth, potentially paving the way for new U.S. stablecoins and enhanced compliance efforts.
U.S. Legislative History Influences GENIUS Act Provisions
Similar previous U.S. legislative efforts, spearheaded by Senators Lummis and others, led to short-term market shifts. Yet they generated proactive dialogues for stablecoin regulation, influencing today’s top-down approach to legality and compliance.
Kanalcoin analysis suggests long-term stablecoin adoption will likely be buoyed by GENIUS Act provisions. Inspired by past dialogues, this development should enable streamlined regulatory frameworks, enhancing both marketplace transparency and technological integration.
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