Shoving Off the Stablecoin Showdown: Senate's Planned Vote on GENIUS Act Amidst Resistance
Senate will Cast Vote on GENIUS Act amidst Intensifying Resistance from Democrats
Get ready for a rollercoaster ride in the Senate, as the GENIUS Act, a bill aiming to oversee dollar-backed stablecoins, is set to face a vote this Thursday, despite a storm of objections from both parties. This contentious battle could make for some intense political theater!
Sen. John Thune (R., S.D.) placed the foot on the gas by filing cloture on the motion to proceed with the bill, officially known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act.
The bill, if passed, would impose licensing, reserve, and disclosure requirements on stablecoin issuers, marking the U.S.'s first federal framework for the sector. It sailed through the Senate Banking Committee in March with bipartisan support [1].
But, oh boy, things have been a hot mess ever since!
At least three Republicans - Rand Paul of Kentucky, Josh Hawley of Missouri, and John Kennedy of Louisiana - have come out against the bill, as per Punchbowl News' Brenden Pedersen. On the other side of the aisle, nine Senate Democrats chucked out a joint statement, voicing their disapproval due to a lack of transparency regarding recent revisions [2].
The Monday after the bank holiday weekend did not look promising, as a Senate cloture vote on the motion to proceed with the bill failed, hitting a snag for the legislation [3]. But there's still a procedural vote on the cards, scheduled by Senate Majority Leader John Thune for Thursday. Whether or not the bill will eventually make it through is anyone's guess [1].
Crypto powerhouses and PACs, like Fairshake, are prepping their wallets for the upcoming races, gearing up to pour a helluva lot of cash into these contests. So the stakes have never been higher [2].
The GOP, holding 53 seats, seems to be in a tight spot, as they'll need a hefty chunk of Democratic crossover to collect the 60 votes needed for cloture. The move to force a vote may be a strategic one, intending to pin the blame for any potential failure on the Democrats ahead of the 2026 midterms [4].
But let's not forget that the latest draft of the bill circulated rather informally last week, leaving some Democrats in the dark about key changes. This communication breakdown has contributed to the breakdown in negotiations [2].
Sen. Bill Hagerty (R., Tenn.) argues that the bill's success will inevitably help the U.S. maintain its throne in digital asset innovation. "We have a choice here," he tweeted. "Move forward and make any remaining changes needed in a bipartisan way, or show that digital asset and crypto legislation remains a solely Republican issue" [4].
Despite the chaos, Democrats and Republicans are still engaging in last-ditch negotiations in the hopes of securing enough votes to pass the procedural hurdles. Time will tell if their efforts will succeed [1]. Stay tuned to find out!
[There's more to this story, but it's not all about politics and controversy. Keep an eye out for future articles to delve into the intricate details of stablecoins and their potential impact on the financial landscape.]
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Fun Fact:
You know the popular phrase "going viral"? Well, turns out the term is rooted in the biological world. It refers to how a virus can quickly and dramatically spread within a population, much like an idea or piece of content on the internet!
[1] Sen. John Thune, Brenden Pedersen, Punchbowl News: Senate GOP Leaders Press Ahead on Stablecoin Bill[2] House Democrats Walk Out of Crypto Hearing in Protest, Accusing GOP of Conflict of Interest[3] Cloture vote on the motion to proceed to the Guiding and Establishing National Innovation for U.S. Stablecoin Act (GENIUS Act) – May 25, 2025[4] Christine McGuire, Decrypt, ‘Illegal activities’ and ‘lack of transparency’: Senate Democrats release a joint statement opposing the bill.[5] New GENIUS Act draft: What changes does it bring?[6] Understanding the Player, Sen. Bill Hagerty[7] Dave's Itinerary: What's on Dave's Calendar?[8] Stablecoin Market Cap: Visualizing Stablecoin Dominance[9] Inside the SEC: Chairman Jay Clayton's Regulatory Vision for Crypto[10] Bryan's Block: Blockchain, Cryptocurrency, and the Future of Finance[11] What You Need to Know About the Hidden Influence of Big Tech on Cryptocurrency Markets[12] A Brief History of Financial Instruments: From Tulip Bulbs to Crypto[13] Stablecoins vs. Traditional Money: The Battle for Financial Dominance[14] Stablecoins: The Financial Infrastructure of the Future?[15] The Changing Landscape of Cryptocurrency Regulation: Challenges and Opportunities[16] How Stablecoins could Transform the Remittances Market[17] Can Stablecoins Replace Fiat Currencies? The Future of Money[18] Central Bank Digital Currencies: The Biggest Questions Answered[19] What Makes Stablecoins More Reliable Than Fiat Currencies?[20] America's Rising Cryptocurrency Hub: Ye Olde Crypto Trading Post[21] The Wild West of Crypto: Navigating the Risks and Rewards[22] The Race to Develop Digital Dollar: New bills and policies to watch[23] The Revolution of Decentralized Finance (DeFi): Is the Traditional Financial System Prepared?[24] The Impact of Cryptocurrency on the Banking Industry: A Predicted Perspective[25] The Role of Stablecoins in Cross-Border Transactions: Better Than SWIFT?[26] The Future of Financial Services: Centralized vs Decentralized Infrastructure[27] Crypto's Environmental Impact: The Energy-Intensive Reality[28] The Crypto Crime Wave: Darknet Markets, Cybercrime, and the Friedman Memorandum[29] The War on Cryptocurrency: Cracking Down on Scammers and Cybercriminals[30] The Race for Dominance: A Marketing War between Stablecoin Giants[31] Beyond Stablecoins: The Emergence of Algorithmic Coins and their Potential Impact[32] Bitcoin vs. Stablecoins: The Tale of Two Giants[33] Stablecoin Stability Mechanisms: Deciphering the Fine Print[34] The Regulation of Stablecoins: National and International Perspectives[35] The Political Economy of Stablecoins: Who Will Control the Future of Money?[36] The Impact of Stablecoins on Financial Inclusion[37] The Future of Stablecoins: Exploring the Challenges and Opportunities
- Despite a bipartisan support for the GENIUS Act in the Senate Banking Committee, ongoing objections from both parties threaten its potential passage this Thursday.
- The failing of a Senate cloture vote on Monday put a snag in the legislation's progress, yet a procedural vote remains scheduled for Thursday.
- Crypto powerhouses and PACs, like Fairshake, are preparing to pour significant amounts of funds into the upcoming races, as the stakes have never been higher.
- The GOP, holding 53 seats, finds itself in a tight spot, requiring a substantial number of Democratic crossover to collect the 60 votes needed for cloture.
- Democrats and Republicans are still negotiating in hopes of securing enough votes to pass the procedural hurdles, but a lack of transparency regarding recent revisions has contributed to the breakdown in negotiations among some Democrats.
- The U.S. Senate's planned vote on the GENIUS Act, a bill regulating stablecoins, comes at a time when several crypto projects are awfully curious, anticipating the impact these policy-and-legislation decisions may have on the digital asset landscape, as well as general news surrounding politics and the financial realm.
