The U.S. Senate has officially advanced the GENIUS Act—a landmark bill aimed at regulating stablecoins—following a pivotal 66-32 procedural vote on May 19. The bipartisan result sets the stage for full Senate debate in the coming days.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act, had previously stalled after several Democratic senators objected to provisions they claimed would indirectly benefit former President Donald Trump’s crypto-related ventures. However, those concerns appear to have been addressed, with Senators Mark Warner, Adam Schiff, and Ruben Gallego reversing their stance and voting in favor of advancing the bill.
Republican Senator Cynthia Lummis, one of the legislation’s lead sponsors, expressed optimism that a full Senate vote could happen before the Memorial Day recess on May 26. If passed, the GENIUS Act would create a federal licensing regime, collateral requirements, and compliance standards for stablecoin issuers—marking the most comprehensive federal stablecoin framework to date.
Democrats Pivot on Stablecoin Bill After Trump Conflict Concerns
Just weeks after blocking the bill’s progress, several key Democrats in the Senate have changed course, removing a major obstacle to what could be the first federally backed stablecoin regulatory framework in the United States.
Their initial opposition, voiced during a failed May 8 vote, centered on perceived conflicts of interest involving Trump’s crypto ventures and skepticism over the bill’s Anti-Money Laundering enforcement provisions. Senator Mark Warner, one of the most vocal critics at the time, acknowledged those concerns but emphasized the larger geopolitical implications of regulatory inaction.
“We cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay,” Warner said in a statement ahead of this week’s successful cloture vote.
“If American lawmakers don’t shape it, others will—and not in ways that serve our interests or democratic values.”
Warren Calls Bill a Windfall for Trump’s Crypto Empire
As momentum builds for the GENIUS Act, Democratic Senator Elizabeth Warren is intensifying her criticism—arguing that the bill would effectively legitimize and enrich President Donald Trump’s expanding crypto empire.
Warren, a longtime critic of the digital asset space, warned ahead of the Senate’s May 19 vote that the legislation fails to meaningfully address what she called Trump’s “blatant crypto corruption.” She pointed to the Trump family’s growing involvement in the sector, including memecoins, a mining venture eyeing a public listing, a crypto platform, and the recently launched stablecoin USD1—which has already climbed to seventh globally by market cap, according to CoinGecko.
“Trump and his family have already pocketed hundreds of millions of dollars from his crypto ventures, and they stand to make hundreds of millions more from his stablecoin, USD1, if this bill passes,” Warren said.
GENIUS Act Outlines Licensing Rules and Limits Algorithmic Models
The GENIUS Act, introduced by Senator Bill Hagerty on February 4, seeks to bring legal clarity to the $250 billion stablecoin market, currently dominated by Tether’s USDT and Circle’s USDC. The bill mandates full collateral backing for issued stablecoins, regular third-party audits, and explicit regulatory approvals.
It also places limits on algorithmic stablecoins and restricts issuance to federally licensed entities, marking a sharp regulatory contrast with unregulated or offshore stablecoin models. Supporters argue the GENIUS Act builds on previous efforts—such as the Clarity for Payment Stablecoins Act—and brings much-needed guardrails to an industry poised for mainstream integration.
But critics like Warren view the bill as a potential Trojan horse for private and politically connected interests—especially those linked to the former president.
Quick Facts
- The Senate advanced the GENIUS Act on May 19 in a 66–32 procedural vote, clearing the path for full legislative debate.
- Key Democrats reversed their earlier opposition, citing the strategic need for stablecoin regulation despite Trump-related concerns.
- Senator Elizabeth Warren remains a fierce critic, warning that the bill could enrich Trump’s crypto empire, including his new stablecoin USD1.
- The GENIUS Act mandates federal licensing, full collateral backing, regular audits, and restrictions on algorithmic stablecoin issuance.
