Following a vote on Monday, May 20, 2025, the U.S. Senate has made a significant move towards regulating the crypto market by advancing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This bill aims to establish a detailed framework for stablecoins, a form of cryptocurrency pegged to fiat currencies like the U.S. dollar.
Remarkably, some Democrats opposed the bill during its first proposal, expressing concerns that it could benefit President Donald Trump and his family personally. However, Monday’s vote differed as some opposing sides changed their views to vote for the GENIUS Act, resulting in a significant advancement.
Stablecoins Regulations Incoming
Reports show that about 16 democrats pulled out from their previous stand to increase the number of stablecoin regulation supporters to 66. In contrast, only 32 members of the Senate stood against the GENIUS Act.
Senator Mark Warner of Virginia, a Democrat on the Banking Committee, expressed concerns on stablecoin regulation, after considering Trump’s stablecoin, which has exceeded a $2 billion market value within two months of launch. He said:
“Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight, hide shady financial dealings, and personally profit at the expense of everyday Americans.”
However, he changed his mind and referred to the bill as a “meaningful step forward.”
“The stablecoin market has reached nearly $250 billion, and the U.S. can’t afford to keep standing on the sidelines. We need clear rules of the road to protect consumers, defend national security, and support responsible innovation,” Mr. Warner added.
If actualized, the bill would ensure that USD-pegged stablecoins hold reserves of safe assets. Moreover, it’ll require issuers to strictly comply with anti-money laundering and terrorism finance rules to prioritize safety and ensure that holders recover their funds in case of bankruptcy.
More Wins for the Crypto Industry
In another recent development, the chairman of the U.S. Securities and Exchange Commission, Paul Atkins, has revealed plans to merge crypto and securities under one roof. He highlighted that implementing the merger would reduce costs for investors and bring non-security trading to the federal level.
Notably, this sharply contrasts with the former SEC chairman, Gary Gensler, who classified crypto assets as securities and raised charges against some token founders.
Meanwhile, the new crypto-friendly SEC administration has boosted the confidence of token issuers and others in the crypto community as they expect further developments in favour of the technology.
