US cryptocurrency regulation takes a critical step! Stablecoin bill breaks through Senate on Tuesday

The Zhitong Finance App learned that the US Senate will hold a final vote on the “GENIUS Act” on June 17 (Tuesday) local time. The bill, which aims to regulate stablecoins, is expected to be passed, and the crypto industry is also hoping to strengthen its legitimacy with the bill.

Last Wednesday, the US Senate passed a procedural motion to amend the GENIUS Act by a vote of 68 to 30, clearing the procedural hurdles faced by the bill. The stablecoin bill will establish regulatory rules for dollar-linked tokens used for payments. The core provisions of the legislation require stablecoin issuers to hold 100% of the equivalent asset reserves of US dollars, including short-term US bonds or regulated cash-like assets. Proponents believe this will push stablecoins pegged to the US dollar to become mainstream payment instruments. US Treasury Secretary Vincent said last week that the bill could help the US stablecoin market break through $2 trillion by the end of 2028.

According to reports, 18 Democratic senators supported the bill, and they are expected to work with the majority Republican senators to push for the bill to be passed by 53 votes to 47 in the Senate. Some senators viewed this bill as the result of bipartisan cooperation. Maryland Democratic Senator Angela Alsobrooks said, “We really haven't been able to include everything we wanted into the bill, but this is a good result of bipartisan cooperation.” South Carolina Republican Senator Tim Scott, chairman of the Senate Banking Committee, said last week: “The GENIUS bill will be the most important digital asset legislation passed by the US Senate. This is the result of months of joint efforts between the two parties.”

However, most Democrats still oppose the bill. They note that the bill hardly addresses US President Trump's personal financial interests in the cryptocurrency space. The bill contains a provision prohibiting members of Congress and their families from profiting from stablecoins, but the ban does not apply to the president and his family.

Massachusetts Democratic Senator Elizabeth Warren bluntly warned that the bill “opens up a fast track” for Trump's corruption. She also warned that the bill could allow big tech companies like Amazon (AMZN.US) and Meta (META.US) to launch their own stablecoins.

It is worth mentioning that even though the bill passed the Senate successfully on Tuesday, it still faced many hurdles before it was sent to the President for signature. It also needs to pass the House of Representatives, which is controlled by a weak Republican majority, and members of the House of Representatives may try to add a broader market structure bill — which may make it more difficult to pass in the Senate. Trump previously said he would like the bill to reach his desk before Congress adjourns in August — less than 50 days from now.