GENIUS Stablecoin Bill Moves Forward with Stronger Oversight, Senate Vote Slated for May 19

The U.S. Senate is poised to vote on May 19, 2025, on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bipartisan bill to regulate stablecoins.

Last week, the bill faced a setback when it failed to secure the 60 votes needed for cloture, with Democrats withdrawing support over concerns about President Donald Trump’s extensive cryptocurrency ventures, including his family’s World Liberty Financial and the $TRUMP meme coin. In a bid to salvage bipartisan cooperation, the Senate has received a revised draft of amendments that strengthen oversight and limit tech giants’ ability to issue stablecoins. At a recent Stand With Crypto event, Sen. Kirsten Gillibrand (D-N.Y.) hinted that language targeting Trump’s crypto interests is being revised, though negotiations continue to finalize the text.

GENIUS Act: Purpose and Recent Hurdles

Introduced by Senators Kirsten Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo.), Tim Scott (R-S.C.), and Bill Hagerty (R-Tenn.), the GENIUS Act aims to regulate stablecoin issuers through stringent requirements: one-to-one reserve backing, anti-money laundering (AML) compliance, and a ban on algorithmic stablecoins. The bill seeks to strengthen U.S. financial leadership while ensuring consumer protections. According to The Block, the GENIUS Act appears to mandate that stablecoins maintain 100% reserves in U.S. dollars or similarly liquid assets, undergo annual audits for issuers with a market cap exceeding $50 billion, and meet additional requirements. It also includes language addressing foreign issuance of stablecoins in the U.S.

On May 8, 2025, the bill fell short in a 48-49 cloture vote, failing to secure the 60 votes needed to advance. Nine pro-crypto Democrats, including Sens. Ruben Gallego (D-Ariz.) and Mark Warner (D-Va.), withdrew support, citing concerns over Trump’s crypto ventures, notably a $2 billion deal involving World Liberty Financial’s stablecoin, USD1, and an Abu Dhabi-backed investment in Binance. Senator Elizabeth Warren (D-Mass.) criticized the bill’s lack of safeguards, warning it could enable “Trump’s crypto corruption.” Republicans, including Sen. Lummis, defended the bill’s revisions, accusing Democrats of obstructing progress.

Revised Amendments: Tech Giants and Regulatory Oversight

Reporter Eleanor Terrett stated that Senate Majority Leader John Thune has submitted a revised proposal for the GENIUS Act. Two sources informed Terrett that the revised proposal incorporates new provisions on consumer protection, bankruptcy, and ethical standards. Terrett revealed details from page two of the GENIUS Act draft.

According to her disclosure, the amended draft introduces several key changes to strengthen financial oversight. The amendments explicitly prohibit stablecoin issuers from falsely claiming FDIC insurance or U.S. government backing and ban the use of terms like “United States” or “U.S. government” in stablecoin names to prevent consumer confusion.

A critical provision restricts tech giants, explicitly barring non-financial public companies like Meta, Amazon, Google, and Microsoft from issuing stablecoins unless they meet stringent standards for financial risk, consumer data privacy, and fair business practices, aiming to maintain separation between banking and commerce.

The amendments also bolster enforcement mechanisms, allowing the Treasury Department to suspend an issuer’s registration for “reckless or willful violations” and expanding ethical standards to cover special government employees, including Elon Musk, to ensure consistent application of financial conflict-of-interest rules.

Proposed Revisions to Trump-Related Provisions

On May 15, 2025, at an event hosted by Coinbase’s lobbying arm, Stand With Crypto, Senator Kirsten Gillibrand indicated that the GENIUS Act’s revised draft is addressing provisions targeting Trump’s crypto interests, including the $TRUMP and $MELANIA memecoins, World Liberty Financial’s USD1 stablecoin, and a planned crypto mining company. “When this language comes out, people will see really good refinement, a lot of progress, on things like consumer protection, and bankruptcy protection, and ethics,” she said, noting the bill includes “some ethics requirements” but is not ethics-focused. She added, “If we were dealing with all President Trump’s ethics problems, it would be a very long and detailed bill.”

The amendments, however, remain under negotiation. Lawmakers describe the bill as “90% there,” with Democrats pushing for stronger AML and consumer protections. Senate Minority Leader Chuck Schumer (D-N.Y.) emphasized the need for a finalized text, stating, “In the Senate, we've always had a text of a bill before we vote on it.”Senator Cynthia Lummis, also at the Stand With Crypto event, expressed optimism, targeting passage by May 26, 2025. Coinbase CEO Brian Armstrong, present at the event, urged focus on stablecoins, stating, “What I do think is important is that this bill remains focused on stablecoins.”

Stablecoin Market Context and Lawmaker Perspectives

Stablecoins, with a global market cap of $246.47 billion as of May 2025 according to CoinMarketCap, are critical for crypto trading and cross-border payments. Trading volume surged 33.37% in Q1 2025 according to Glassnode, reflecting growing adoption. The GENIUS Act’s framework would require transparent reserves and federal oversight, potentially strengthening trust in assets like Tether (USDT) and Circle’s USDC. Regulatory clarity could keep innovation onshore, countering competitors like China’s digital yuan, as Gillibrand noted: “The future of stablecoins and cryptocurrency has strong bipartisan support. This bill will empower responsible innovation, maintain U.S. leadership in digital assets, and keep crypto companies and jobs onshore—I’m proud to introduce this bill.”

The May 19 cloture vote will determine the GENIUS Act’s fate. If Democrats agree to advance the stablecoin bill through cloture, a vote on the substitute amendment would follow, then a vote to end cloture, and finally a vote to pass the bill. If successful, the Senate could pass the bill by May 26, marking a landmark for U.S. crypto regulation.