The U.S. Senate has moved one step closer to passing the GENIUS Act, a bill that would create new rules for stablecoins. The bill got strong bipartisan support, with 68 senators voting in favor and 30 against a motion to limit debate. The vote happened this week, and a final vote on the bill could come as early as next week, happening in Washington, D.C., in the halls of the U.S. Senate.
Stablecoins are digital currencies tied to the value of the dollar, and the bill aims to bring clear rules to this growing space. The GENIUS Act outlines new rules for issuers, including holding dollar-backed reserves and undergoing audits.
The cloture vote focused on a substitute amendment introduced by Senator Bill Hagerty. This amendment allows state regulators to oversee stablecoin issuers that handle less than $10 billion, giving smaller players a path to compliance without federal overreach. It’s seen as a move to help innovation while keeping things transparent.
One big change in the bill is the ban on stablecoins that offer interest, a result of lobbying from traditional banks. Big banks see these interest-yielding coins as competition to customer deposits. According to reports, banks like Bank of America are working on their own stablecoin to stay in the game.
The bill also requires issuers to keep a one-to-one reserve of U.S. assets like Treasury bonds. For larger players, those with over $50 billion in market cap regular audits will be mandatory to prove they are playing by the rules.
The GENIUS Act now only needs a simple majority in the final Senate vote before moving to the House of Representatives. Once both chambers agree, it heads to the president’s desk. However, President Donald Trump has previously expressed full support.
This comes just after the CLARITY Act, another crypto-focused bill, made progress through committee stages in both the House Agriculture and Financial Services Committees, showing momentum for crypto lawmaking in Washington.
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