The U.S. Senate has taken the initial steps toward final approval of its first major legislation in the field of cryptocurrency, as members began voting Wednesday on a bill that sets standards for stablecoin issuers in the United States, thereby surpassing the highest procedural hurdle with a result of 68 to 30.
In a moment that will represent the biggest success for American policy in this field so far, the Senate, known for its slowness, is on track to pass legislation with broad bipartisan support. While the cryptocurrency world watches the Senate's retreat from its long-standing opposition to it, the House of Representatives also secured two key votes to advance more significant legislation for the sector: the Digital Asset Market Clarity Act, which would establish a comprehensive set of rules regulating U.S. oversight of cryptocurrency markets.
In the Senate, the "Guidance and Establishment of National Innovation for U.S. Stablecoins Act of 2025" (GENIUS) is a significantly amended bill that has already received bipartisan approvals in multiple procedural votes and is now on its expected path this Wednesday. The Senate had to surpass the threshold of 60 votes to move to the final vote, which was easily obtained as many Democrats joined Republicans in pushing for regulation of stablecoins.
The bill will create a system under which stablecoins can be issued in the United States under the supervision of state or federal regulatory bodies, while leaving some avenues for non-financial companies to launch their own currencies (a point of criticism from Democrats). Regulating these assets is crucial for cryptocurrency market operations, as dollar-pegged tokens, such as Circle's USDC ($0.99965) and Tether's USDT ($0.99999), are routinely used in transactions and contracts.
In the previous Congress session, the Banking Committee in the Senate, which was then run by Democrats, hindered the passage of cryptocurrency legislation, but its current Republican chair, Senator Tim Scott from South Carolina, has become one of the staunchest advocates for cryptocurrency. The pro-cryptocurrency stance in the chamber has gained strength during this session and will be further bolstered by Wednesday's votes.
Before the vote on Wednesday, the sponsor of the GENIUS Act, Senator Bill Hagerty, requested his colleagues' support for the bill. Hagerty stated, "This would enhance our financial position and support the dollar's status as the global reserve currency." He added, "If we don’t act now, not only will these advantages fade away, but we will also fall behind in global competitiveness without a regulatory framework." However, Senator Elizabeth Warren, the leading Democrat on the Senate Banking Committee, sharply criticized the "Genius" Act. The senator from Massachusetts stated, "The GENIUS Act lacks the basic safeguards necessary to ensure that stablecoins do not impact our entire financial system." She further added, "The bill allows stablecoin issuers to invest in risky assets and permits them to engage in risky activities unrelated to stablecoins, such as private credit or derivatives trading." Warren sent a pointed message to her party colleagues, many of whom were expected to support the bill, stating that "they need to show some courage" and insist that Republicans allow for some amendments previously proposed by Democrats.
When the stablecoin bill is referred to the House, it leaves the key decision in the hands of the leaders there, whether to tie the "Genius" Act to market structuring efforts or pursue it as a standalone measure. Voting on the Senate version, or a more complicated process of merging the Senate's wording with legislation being prepared in the House. Whatever happens, the House will need Senate approval at some point before referring the stablecoin bill to the President's office for signature to become law.
As the GENIUS Act progresses, this came after a busy day of successes for supporters of the Clarity Act in the House, which was approved by the Financial Services Committee and the Agriculture Committee with a majority bipartisan vote on the same Tuesday.
Cryptocurrency lobbyists in Washington, along with their legislative allies, argue that both bills are essential for properly regulating this industry in the United States.
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