Overview

• The Senate voted 66-32 to advance the GENIUS Act, a bill proposing the first comprehensive U.S. regulatory framework for stablecoins, to the amendment phase.
• The legislation includes requirements for stablecoin issuers to maintain 1-to-1 reserves, comply with anti-money laundering rules, and prioritize holders in bankruptcy proceedings.
• Democratic divisions persist, with 16 Democrats joining Republicans to advance the bill despite concerns over President Trump’s financial ties to stablecoins and potential conflicts of interest.
• Senate Majority Leader John Thune has indicated the amendment process will be lengthy, with final passage unlikely before the Memorial Day recess.
• Supporters argue the bill could mainstream digital assets and strengthen financial stability, while critics, led by Senator Elizabeth Warren, warn of ethical risks and regulatory gaps.