In a positive turn of events, the U.S. Senate has taken the final step towards regulating the booming stablecoin market. The GENIUS Act was brought to the Senate floor once again, and this time, the bill passed with 66-32 votes on May 19. Guiding and Establishing National Innovation for US Stablecoins Act will mark the beginning of better regulations for the crypto industry.

The bill was temporarily stalled earlier this month when it lost its progress due to Democratic concerns over former President Donald Trump’s growing influence in the cryptocurrency landscape. The successful motion now opens the bill for formal debate on the Senate floor.

GENIUS Act Ready for Debate

The GENIUS Act bill was originally introduced by Republican Senator Bill Hagerty on February 4. The bill aims to bring federal oversight to the $250 billion stablecoin sector of the crypto industry. Once passed, the stablecoins will be fully backed, issued by licensed entities, and undergo regular audits. Along with that, algorithmic stablecoins will be banned as they are viewed as risky due to their unstable mechanism.

The supporters of the GENIUS Act bill argue that the bill is long overdue. As the U.S. tries to catch up with global regulatory development in crypto finance, passing this bill is a right step forward. “It’s a fair target to have the GENIUS Act passed by Memorial Day,” said Senator Cynthia Lummis (R-WY), one of the bill’s strongest proponents.

While the support for the bill is still present, the GENIUS Act has received sharp criticism from the industry. Senate Democrats have shown strong opposition to the bill. In fact, Senator Elizabeth Warren has been consistent in her skeptical stance against the bill as well as the crypto industry.

Warren accused the bill of failing to address what she called Trump’s “blatant crypto corruption.” She pointed to the former president’s extensive involvement in the sector, including ventures in memecoins, mining companies, and a stablecoin named USD1, which has quickly become the seventh-largest in the market.

“Trump and his family have already pocketed hundreds of millions from his crypto ventures, and they stand to make hundreds of millions more if this bill passes,” Warren warned during floor remarks.

Earlier this month, several Democratic senators, including Mark Warner (VA), Adam Schiff (CA), and Ruben Gallego (AZ), had joined Warren in blocking the bill’s advancement. Their concerns focused on potential conflicts of interest, particularly how regulatory changes might benefit Trump’s crypto businesses. However, the trio reversed their stance in the latest vote, signaling a willingness to move forward with debate, albeit with reservations.

Warner acknowledged the risks but emphasized the urgency of action. “The United States cannot afford to keep standing on the sidelines while the global crypto industry evolves,” he said in a statement.

The GENIUS Act builds on previous efforts like the Clarity for Payment Stablecoins Act introduced by former Representative Patrick McHenry, aiming to bring clarity and consumer protections to a fast-growing but still loosely regulated financial industry. With debate now imminent, the Senate faces a tight timeline to pass the bill by the May 26 Memorial Day target, a deadline that could prove ambitious given the political friction still surrounding crypto policy in Washington.

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