• The U.S. Senate will hold another vote tonight on advancing the GENIUS Act, which aims to establish the first comprehensive regulatory framework for stablecoins.
  • The bill failed to secure the necessary 60 votes in early May after losing Democratic support, but proponents remain optimistic about its chances this time.
  • Recent modifications address concerns about consumer protection and national security, including a provision barring large public companies like Meta from becoming stablecoin issuers.

Another attempt at stablecoin regulation

The Senate is preparing for a second vote tonight on legislation that would create rules for stablecoins, after an earlier attempt collapsed in early May. The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act needs 60 votes to advance, a threshold it failed to reach last time when several Democratic lawmakers withdrew their support.

Senator Bill Hagerty (R-TN), the bill's author, had previously expressed confidence about its passage, calling it "historic" legislation that would establish the first pro-growth regulatory framework for payment stablecoins. The bill has undergone revisions to address Democratic concerns, including new provisions that would prevent large tech firms from issuing stablecoins while allowing private companies like Elon Musk's X to participate.

What's at stake

Industry representatives view the legislation as crucial for maintaining U.S. leadership in digital assets. "This bill is going to pass the Senate in the next few weeks," predicted Cody Carbone of Digital Chamber, a blockchain trade association. The legislation aims to keep digital asset innovation within the U.S. while protecting consumers and maintaining dollar dominance.

The outcome of tonight's vote could determine whether Congress can establish regulatory clarity for stablecoins before the 2026 midterm elections. Without comprehensive reform, some experts warn the regulatory environment could turn less favorable for cryptocurrencies. Banking Committee Chairman Tim Scott (R-SC) and Senator Cynthia Lummis (R-WY) are among the bill's prominent supporters, with Lummis calling it "a huge victory" for the digital asset industry.

Senate staffers say negotiations have continued behind the scenes to address remaining concerns, though it remains unclear whether enough Democrats will support the measure this time. The vote is expected to occur late tonight, according to people familiar with the matter.