The Senate vote on stablecoin regulation is expected to take place today, June 17, 2025, marking a significant moment for the future of U.S. crypto legislation. The bill in question, known as the GENIUS Act, has cleared preliminary hurdles and could now proceed to full passage, bringing long-awaited clarity to the stablecoin market.

 

What the GENIUS Act Proposes

The Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act, aims to create a clear regulatory framework for stablecoins; digital currencies pegged to traditional assets like the U.S. dollar. With the market currently valued at around $238 billion, the legislation seeks to define how stablecoins are issued, audited, and backed in the United States.

The bill mandates that stablecoins be fully backed by U.S. dollars or similarly liquid assets, imposes annual audits for issuers with over $50 billion in market cap, and outlines bankruptcy protections for holders. Additionally, it restricts non-financial public companies like Meta or Amazon from issuing stablecoins unless they meet specific financial risk and privacy safeguards.

This framework is designed to increase public trust in stablecoins and encourage more competition in what is currently a market dominated by a few players, namely Circle’s USDC and Tether’s USDT.

 

How We Got to the Senate Floor

After several weeks of committee negotiations, amendments, and a failed initial attempt, the GENIUS Act finally secured enough bipartisan backing to advance. A recent cloture vote passed 68 to 30, with 18 Democrats joining Republicans to support further debate.

One of the key concerns during early discussions was President Donald Trump’s ties to World Liberty Financial, a firm recently launching its own stablecoin. While that connection raised conflict-of-interest questions, particularly from Senator Elizabeth Warren, the current version of the bill includes provisions to address such concerns. These include a ban on government officials being directly involved in stablecoin issuance and disclosure requirements for any holdings above $5,000.

Still, there are constitutional limits, particularly around barring business interests of non-minor children of elected officials. As one Democratic aide put it, “The family is the difficult part”.

 

Support and Opposition in the Senate

Supporters of the GENIUS Act argue that it brings needed regulation to a growing financial sector. Senator Bill Hagerty (R-Tenn.), who introduced the bill, emphasized that without action, the U.S. could fall behind in global innovation.

Some experts in the crypto space also view the bill as a strategic move to preserve the dominance of the U.S. dollar on the global stage. Since the vast majority of stablecoins are dollar-pegged, regulation could, in theory, reinforce the greenback’s role in international finance.

However, not everyone is on board. Critics like Senator Jeff Merkley (D-Ore) argue that the bill lacks “guardrails” to prevent abuse, such as officials indirectly promoting specific coins for personal gain. Others worry that allowing too many entities to issue stablecoins could lead to a fragmented regulatory environment and pose enforcement challenges.

 

Implications Beyond the Crypto World

While the GENIUS Act focuses on digital currencies, its impact may stretch into broader financial markets. During earlier House debates, some lawmakers attempted to attach the Credit Card Competition Act (CCCA) to the bill. That proposal would have required credit card issuers to offer more than two network processing options, challenging the dominance of Visa and Mastercard.

Though the CCCA was ultimately removed to avoid jeopardizing GENIUS Act’s passage, some analysts suggest that stablecoin adoption could eventually lead to similar reforms in traditional payments. According to crypto analyst Nic Puckrin, banks, fintechs, and merchants may soon be compelled to accept stablecoins, potentially lowering transaction fees across the board.

 

What’s Next?

Today’s Senate vote is a critical step. If passed, the GENIUS Act will then move to the House of Representatives, where it may be taken up in place of the House’s own pending stablecoin bill; the STABLE Act. While the two bills differ in key areas such as treatment of foreign issuers and state-level compliance paths, Senate momentum may push GENIUS forward more quickly.

Jennifer Schulp of the Cato Institute noted that GENIUS appears to be the “minimum viable framework” with enough bipartisan appeal to realistically pass both chambers.

Also read: STABLE Act vs. GENIUS Act

 

Looking Ahead

As the Senate prepares for a pivotal vote today, the GENIUS Act stands at the center of a broader debate about the future of digital finance in the U.S. The outcome could shape not just how stablecoins are regulated, but how they are used in everything from payments to savings to cross-border transfers. For now, all eyes remain on Capitol Hill, as lawmakers decide the fate of the Senate vote on stablecoin regulation.