Stablecoin Bill Revival: US Senators Push Bipartisan Framework Forward

A renewed bipartisan effort is underway to revive the stablecoin legislation that failed to pass the US Senate last week. The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) is getting another chance as lawmakers work across party lines to establish clear regulatory guidelines for the growing stablecoin sector.

Key Developments in the Stablecoin Bill Revival

According to Bloomberg’s recent report, US senators are actively working to expedite the revival of the GENIUS Act before the Memorial Day recess on May 26. The legislation, which aims to bring stablecoins under Federal Reserve oversight, previously fell short of the required 60 votes, securing only 49 senators’ support.

This legislative push comes at a crucial time for the crypto industry, as major financial institutions like Mastercard are already moving forward with stablecoin initiatives, highlighting the urgent need for regulatory clarity.

Bipartisan Support and Key Changes

• Republican Senator Bill Hagerty leads the sponsorship
• Co-sponsors include Senators Tim Scott, Cynthia Lummis, Kirsten Gillibrand, and Angela Alsobrooks
• Enhanced AML provisions added to address Democratic concerns
• Stricter requirements for stablecoin issuers implemented

Challenges and Opposition

The bill faces several hurdles, including concerns from crypto-skeptic Senator Elizabeth Warren regarding potential “crypto corruption.” Ten senators, including four previous supporters, have questioned the revised legislation’s AML and national security safeguards.

Industry Response and Support

Coinbase CEO Brian Armstrong and the Cedar Innovation Fund have voiced strong support for the legislation, emphasizing its importance for American competitiveness in the global crypto market.

FAQ Section

What is the GENIUS Act?

The GENIUS Act is a bipartisan legislation designed to create a regulatory framework for stablecoins under Federal Reserve oversight.

When could the bill potentially pass?

Lawmakers are aiming to pass the bill before the Memorial Day recess on May 26, 2025.

What are the main changes in the revised version?

The revised version includes enhanced AML provisions and stricter requirements for stablecoin issuers.

Looking Ahead

The success of this legislative effort could mark a pivotal moment for the US crypto industry, potentially providing the regulatory clarity needed for widespread stablecoin adoption and innovation.