The first federal stablecoin framework is advancing to a vote as lawmakers clash over transparency and timing
Senate leaders are advancing a Thursday vote on the GENIUS Act, a landmark proposal to regulate dollar-backed stablecoins, despite growing resistance and an uncertain legislative outlook.
Officially named the Guiding and Establishing National Innovation for U.S. Stablecoins Act, the bill would establish the first federal framework for stablecoin issuers.
It includes requirements for licensing, reserve backing, and regular disclosures aimed at increasing transparency and consumer protection.
Majority Whip John Thune filed for cloture Tuesday to bring the bill to the floor, setting the stage for a high-stakes showdown with political overtones just two days before the vote.
The bill, which cleared the Senate Banking Committee in March, has since faced backlash over a lack of transparency in its latest revisions and could fall short of the 60 votes needed to advance.
Political optics overshadow policy substance in Senate maneuvering
The most recent version of the GENIUS Act circulated informally last week, sparking confusion among lawmakers who said they were not briefed on the changes.
Nine Senate Democrats issued a joint statement over the weekend criticizing the lack of transparency in the process.
According to Punchbowl News’ Brenden Pedersen, Senators Rand Paul of Kentucky, Josh Hawley of Missouri, and John Kennedy of Louisiana have also voiced opposition to the current draft.
Despite the growing resistance, Senate leadership is choosing to proceed. Some analysts suggest the move is intended to cast blame on opponents and position crypto legislation as a wedge issue ahead of the 2026 midterm elections.
While Republicans hold 53 Senate seats, they are unlikely to reach the 60-vote threshold for cloture without support from across the aisle.
Senator Bill Hagerty, one of the bill’s lead proponents, defended the decision to move forward. “We have a choice here,” he wrote on X.
He argued that the vote would either result in bipartisan revisions or show that critics are unwilling to engage seriously with digital asset legislation.
Push for stablecoin regulation reflects wider shifts in U.S. crypto policy
The GENIUS Act’s progress comes amid mounting political and institutional interest in shaping the future of digital asset regulation.
The bill’s advancement follows high-profile developments such as President Donald Trump’s launch of a digital assets advisory council and Federal Reserve Chair Jerome Powell’s endorsement of stablecoin oversight as a “good idea”.
Meanwhile, crypto-focused political action committees like Fairshake have pledged to spend heavily in upcoming races, with digital asset regulation becoming an increasingly polarizing campaign issue.
On Tuesday, House Financial Services Committee ranking member Maxine Waters led a Democratic walkout over allegations tied to Trump-affiliated crypto ventures.
While the bill’s path to becoming law remains uncertain, the Senate’s decision to proceed underscores the growing urgency of establishing federal rules for stablecoins.
