U.S. Senate split on GENIUS Act – Stablecoin rules by August?

GENIUS Act faces fierce political divide over Trump-linked stablecoin interests. White House favors GENIUS Act to accelerate U.S. stablecoin regulation by August. Amid heightened tensions on Capitol Hill, the debate over stablecoin regulation in the U.S. has reached a boiling point. The spotlight has now fallen on the GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins. While the proposed legislation inches closer to a final vote, it has sharply divided the Senate. A bloc of pro-crypto Democrats—including Senators Ruben Gallego, Mark Warner, and Angela Alsobrooks—recently began negotiations with Republicans to secure bipartisan support. Despite their efforts, resistance remains strong within the Democratic Party. Senators Elizabeth Warren and Jeff Merkley have vehemently opposed the bill, calling it a gateway to Trump’s ‘corrupt crypto empire’. Warren, in particular, alleges a conflict of interest between the legislation and Trump’s USD1 stablecoin. She accuses the former president of manipulating public policy to gain illicit profits. Her concerns escalated after the announcement of a $2 billion deal between Trump-aligned World Liberty Financial (WLFI) and Binance. The deal is backed by capital from an Abu Dhabi-based conglomerate. Mixed reactions from Democrats and Republicans Adding on the sentiment, Kraken Global Head of Policy and Government Relations Jonathan Jachym said in a statement, “Other major economies around the world are years ahead in putting clear rules in place for stablecoins and centralized intermediaries.” He added, “After many years of legislative progress, it is critical that U.S. lawmakers come together in the coming months to finalize stablecoin and market structure bills by August.” Hence, what began as a seemingly bipartisan initiative through the Senate Banking Committee, passing with an 18-6 vote, has now become a lightning rod for controversy. This coincided with USD1 recently exploding past a $1 billion market cap, much of it minted within a single hour, raising further questions about the intertwining of political power and private crypto ventures. Echoing similar sentiments, Senator Bernie Sanders cautioned, “The GENIUS Act would undermine consumer protections, benefit criminal actors, and allow the Trump family to make tens of millions of dollars through crypto ventures.” GENIUS Act vs. STABLE Act However, despite ongoing political friction, the GENIUS Act is gaining traction as the favored stablecoin legislation. Senator John Thune has hinted at imminent Senate action, while the White House reportedly prefers this version over the STABLE Act due to its innovation-friendly, state-level provisions. Bo Hines of the Presidential Working Group aims to have the bill on Trump’s desk within two months. Therefore, while a Conference Committee could delay that timeline, insiders believe a strong Senate vote, potentially 70 or more, could push the House to adopt the GENIUS Act outright, fast-tracking stablecoin regulation. Share Share Tweet