On the night of June 11, the US Senate voted by a large majority to end debate on the GENIUS Act, the first federal bill entirely devoted to stablecoins. Behind this decisive vote of 68 to 30, the bill is moving forward at a rapid pace, but the political battle is not over.
Key legislation passed by the Senate to regulate stablecoins
On Wednesday, June 11, senators adopted the closure procedure for the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), by 68 votes to 30, a bill aimed at regulating stablecoins, cryptocurrencies backed by stable assets such as the dollar.
This vote marks the activation of the “closure” procedure, which allows the debate to be ended and paves the way for a final vote, expected as early as next Monday, unless party leaders agree to move it forward. The bill is supported in particular by Tim Scott, Republican chairman of the Senate Banking Committee:
Let’s be clear, this happened because we took the lead. To those who doubted bipartisanship in Washington, let’s prove them wrong.
The bill requires 100% backing in dollars or equivalent liquid assets for all stablecoins and annual audits for issuers with a market capitalization of more than $50 billion. It also adds anti-money laundering safeguards and restricts the ability of non-financial companies to launch their own tokens.
Despite this enthusiasm, the bill has met with opposition within the Democratic Party itself. Among those voting against it are Chuck Schumer, the Democratic minority leader, as well as Elizabeth Warren and Amy Klobuchar.
A political dynamic influenced by Donald Trump
The bill has been strongly supported by the US president, who has declared himself pro-crypto. The White House has officially announced that if the GENIUS Act is presented to him “in its current form,” Donald Trump will be ready to sign it immediately.
The GENIUS Act is only the first piece of a larger legislative puzzle. The House of Representatives is working on its own text, the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, which was adopted by a committee vote of 32 to 17 in May. The two chambers will have to harmonize their positions in order to merge the texts, with points of friction concerning, in particular, the regulation of foreign players such as Tether.
Meanwhile, the stakes surrounding stablecoins continue to grow: the global supply of stablecoins is already worth $247 billion, or nearly 10% of the fiat currency in circulation in the United States ($2.4 trillion).
This growth is also attracting the attention of the White House. Donald Trump’s advisers have announced that they will recommend the enactment of the GENIUS Act, and World Liberty Financial, a company linked to the president, has just launched USD1, a stablecoin pegged to the dollar.
