GENIUS Act Makes Comeback: Senate Moves Closer to Stablecoin Regulation

In a surprising turn of events, the U.S. Senate has breathed new life into the GENIUS Act, a major piece of legislation aimed at regulating stablecoins, just days after it appeared to stall indefinitely.The bill passed a crucial procedural vote on Monday evening, paving the way for a full Senate vote that could take place as early as Tuesday.The GENIUS Act, which lays the groundwork for a comprehensive regulatory framework around the issuance and oversight of stablecoins in the United States, initially failed to secure the necessary support in a cloture vote earlier this month.That defeat came amid Democratic concerns over ethical issues, particularly regarding potential conflicts of interest tied to President Donald Trump’s crypto affiliations.But on Monday night, a coalition of key Democrats reversed course. Senators including Ruben Gallego (AZ), Mark Warner (VA), Lisa Blunt Rochester (PA), Kirsten Gillibrand (NY), and Angela Alsobrooks (MD)—the latter two being original co-sponsors of the bill—threw their support behind the motion. The result: the measure surpassed the 60-vote threshold required to move forward.Should the full Senate approve the bill, it would proceed to the House of Representatives, and then, if passed, to the President’s desk for final approval. Once enacted, the legislation would provide clear legal guidelines for stablecoin issuers, a move that analysts say could usher in a flood of institutional capital and interest from traditional finance players.New Draft, Renewed SupportSo what changed? According to Senate aides, Democratic lawmakers returned to the table last week to revise the bill’s language. The updated version reportedly includes compromises with Republicans on issues related to ethics, national security, and tech regulation. However, critics argue that some of these amendments may not go far enough.For instance, while the new draft restricts senior federal officials from launching their own stablecoins, it stops short of including the President and Vice President, leaving open the very loophole that previously fueled Democratic hesitation. Similarly, provisions meant to rein in Big Tech’s involvement in stablecoin issuance hinge on whether companies seek user consent to track and monetize financial data, raising questions about enforceability.Industry Pressure BuildsAnother major factor behind the bill’s revival appears to be intensified lobbying from the crypto industry itself. Leading the charge is Coinbase, the largest U.S.-based crypto exchange, which had previously been lukewarm in its support of a standalone stablecoin bill. In recent days, however, with crypto legislation hanging in the balance, the company ramped up its efforts.CEO Brian Armstrong publicly urged Congress to pass the GENIUS Act, while Coinbase’s advocacy arm, Stand With Crypto, threatened to downgrade lawmakers’ ratings if they opposed Monday’s vote. Over the weekend, the company even issued an in-app alert urging users to contact their senators in support of the legislation.This lobbying push reflects the broader stakes for the industry. Last year, Coinbase and other major players raised over $300 million to fund pro-crypto super PACs—resources that are already being marshaled ahead of the 2026 midterm elections.What’s NextIf the GENIUS Act becomes law, it would mark a watershed moment for stablecoin regulation in the U.S. and a significant win for crypto advocates on Capitol Hill. Analysts believe such a legal framework could accelerate institutional adoption, especially as stablecoins—digital tokens typically pegged to the U.S. dollar—offer fast, borderless payments and a bridge between crypto and fiat finance.