On May 21, the U.S. Senate took a huge step towards regulating the cryptocurrency sector as it voted to advance the controversial GENIUS Act after a decisive 66-32 procedural vote.
If passed, the law could bring drastic changes to how stablecoins are monitored.
What is the GENIUS Act?
The bill is expected to bring order to the 250 billion stablecoin market by requiring companies to hold. This act is designed to prevent collapses like the 2022 TerraUSD crash. It also cracks down on money laundering, forcing crypto firms to follow the same anti-fraud rules as traditional banks.
But critics warn the law could create too much red rape. Section 4, for example, tasks both federal and state regulators with “coordinating” oversight. It is a vague mandate that might lead to overlapping rules and confusion.
Senator Elizabeth Warren has raised concerns about conflicts of interest. She pointed her fingers to deals like World Liberty Financial’s Abu Dhabi partnership as examples of why strict ethics rules are needed.
What Happens Next?
Now that the Senate has agreed to debate the bill, lawmakers will spend weeks or months making final decisions.
- Amendment Phase (June-July 2025): Senators will argue over tweaks, from tightening loopholes to stripping out unpopular sections.
- Final Senate Vote (Mid 2025): If a simple majority (51 votes) approves the revised bill, it heads to the House.
- House Review (Late 2025): The House could make its changes, further delaying the process.
- Reconciliation (If needed): If the two chambers pass different versions, a special committee will merge them.
- Presidential Approval: It requires approval from the president’s desk.
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