GENIUS Act Vote on May 19: Will the U.S. Finally Regulate Stablecoins?
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The U.S. Senate is making ready to vote on the GENIUS Act (Assured Digital USD Issuance and Safeguards Act) on Might 19, 2025. The bipartisan invoice, co-sponsored by Senator Invoice Hagerty (R-TN) and Senator Kirsten Gillibrand (D-NY), goals to ascertain the first-ever regulatory framework for fee stablecoins in america.
Hagerty Eyes Bipartisan Breakthrough
Senator Hagerty stays optimistic regardless of the invoice’s rocky journey. On Might 8, the GENIUS Act fell wanting the 60-vote threshold required for cloture—solely 48 senators voted in favor, whereas 49 opposed. Issues from Democrats included:
- Weak anti-money laundering (AML) measures
- Lack of oversight on foreign-issued stablecoins
- Inadequate client safety mechanisms
In response, bipartisan negotiations have led to key amendments. FOX Enterprise reporter Eleanor Terrett confirmed on X that the revised model contains:
- Enhanced buyer safeguards
- Clearer chapter safety for stablecoin holders
- Moral restrictions, barring Huge Tech companies (like Meta, Google) and people like Elon Musk from issuing stablecoins
These additions purpose to win help from cautious lawmakers and make sure the invoice aligns with investor safety and nationwide safety targets.
Stablecoin Market: A $246 Billion Sector Awaits Regulation
The timing is essential. The worldwide stablecoin market is now value over $246 billion, with Tether’s USDT ($151B) and Circle’s USDC ($61B) main the cost. These tokens, pegged 1:1 with fiat forex, are important for merchants, establishments, and fintech innovators.
Use instances are rising quick. Mastercard’s partnership with MoonPay is enabling stablecoin funds for 150 million retailers worldwide—additional validating the necessity for regulation.
Senator Hagerty argues the GENIUS Act would:
- Cement the U.S. greenback’s dominance within the digital financial system
- Improve demand for U.S. Treasuries
- Encourage fintech innovation to remain inside U.S. borders
Can the GENIUS Act Go?
To go, the Senate requires 60 votes. As of Might 17, 2025, the chamber make-up is:
- Democrats (together with Independents): 51 seats
- Republicans: 49 seats
With no get together holding a filibuster-proof majority, the invoice’s success hinges on bipartisan cooperation. If 9–11 reasonable Democrats or Republicans flip in favor, the GENIUS Act might mark a historic regulatory milestone for crypto.
