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The U.S. Senate is preparing to vote on the GENIUS Act (Guaranteed Electronic USD Issuance and Safeguards Act) on May 19, 2025. The bipartisan bill, co-sponsored by Senator Bill Hagerty (R-TN) and Senator Kirsten Gillibrand (D-NY), aims to establish the first-ever regulatory framework for payment stablecoins in the United States.
Hagerty Eyes Bipartisan Breakthrough
Senator Hagerty remains optimistic despite the bill’s rocky journey. On May 8, the GENIUS Act fell short of the 60-vote threshold required for cloture—only 48 senators voted in favor, while 49 opposed. Concerns from Democrats included:
Weak anti-money laundering (AML) measures
Lack of oversight on foreign-issued stablecoins
Insufficient consumer protection mechanisms
In response, bipartisan negotiations have led to key amendments. FOX Business reporter Eleanor Terrett confirmed on X that the revised version includes:
Enhanced customer safeguards
Clearer bankruptcy protection for stablecoin holders
Ethical restrictions, barring Big Tech firms (like Meta, Google) and individuals like Elon Musk from issuing stablecoins
These additions aim to win support from cautious lawmakers and ensure the bill aligns with investor protection and national security goals.
Stablecoin Market: A $246 Billion Sector Awaits Regulation
The timing is crucial. The global stablecoin market is now worth over $246 billion, with Tether’s USDT ($151B) and Circle’s USDC ($61B) leading the charge. These tokens, pegged 1:1 with fiat currency, are essential for traders, institutions, and fintech innovators.
Use cases are growing fast. Mastercard’s partnership with MoonPay is enabling stablecoin payments for 150 million merchants worldwide—further validating the need for regulation.
Senator Hagerty argues the GENIUS Act would:
Cement the U.S. dollar’s dominance in the digital economy
Increase demand for U.S. Treasuries
Encourage fintech innovation to stay within U.S. borders
Can the GENIUS Act Pass?
To pass, the Senate requires 60 votes. As of May 17, 2025, the chamber makeup is:
Democrats (including Independents): 51 seats
Republicans: 49 seats
With no party holding a filibuster-proof majority, the bill’s success hinges on bipartisan cooperation. If 9–11 moderate Democrats or Republicans flip in favor, the GENIUS Act could mark a historic regulatory milestone for crypto.