Lawmakers in Washington are preparing to vote on the GENIUS Act this Thursday, aiming to establish the first clear U.S. rules for dollar‑pegged stablecoins.
The move comes as Senate leaders race to build support despite pushback from Democrats and splits among Republicans.
Procedural Push in the Senate
Senate Majority Leader John Thune filed cloture on Tuesday for the bill sponsored by Sen. Bill Hagerty. That procedural step clears the way for Thursday’s key vote, which needs at least 60 senators to agree before debate can begin.
Supporters say the legislation would finally set federal standards around stablecoins, a fast‑growing form of digital currency.
Democratic Concerns
A group of influential Democrats has held off on backing the bill, calling for stronger rules around foreign issuers and tougher anti‑money laundering measures.
Senator, including Mark Warner, Raphael Warnock and Adam Schiff, said last weekend that the current draft does not go far enough to prevent bad actors from exploiting the market. Party leaders plan more talks to address those worries before the procedural vote.
GOP Divisions
Republicans face internal disagreements as well. Sen. Rand Paul has warned that added regulations could stifle the crypto industry. Sen. Josh Hawley questioned whether big tech firms would gain permission to issue their stablecoins under the proposal.
Meanwhile, Sen. John Kennedy said he wants to see the final text before he commits, noting that the bill has undergone many changes and behind‑the‑scenes deals.
Effort to Build Bipartisan Support
Sen. Cynthia Lummis, a co‑sponsor of the bill, met with Senate Minority Leader Chuck Schumer on Tuesday. She described Schumer as eager to get a deal done but cautious about firm commitments until language is strengthened.
Lummis said Republicans will soon sit down with reluctant Democrats to hammer out revisions that could win the needed votes.
Also Read: Tether Targets U.S. Market Entry with Upcoming Stablecoin Launch Slated for Rollout Later This Year
What the Bill Does?
The GENIUS Act would create a federal framework for stablecoin issuers, requiring them to hold reserves and comply with oversight from regulators.
Proponents argue this will protect consumers and promote innovation by giving businesses clear rules to follow. Critics worry that the rules may be too loose on some fronts while overreaching in others.
Fast‑Evolving Stakes
Stablecoins have grown rapidly in recent years as users seek fast, dollar‑linked tokens for payments and trading.
Without clear federal rules, states and agencies have moved at different paces, creating uncertainty for businesses. Lawmakers see the GENIUS Act as a chance to bring order to a booming market.
With just days to go, staffers are meeting behind the scenes to nail down deal points that can unlock support. Sen. Kevin Cramer said the effort is close to regaining momentum. But with top Democrats and some Republicans on the fence, passage is far from guaranteed.
As Thursday’s vote nears, advocates for the GENIUS Act hope final tweaks will satisfy enough senators to push the bill over the 60‑vote threshold.
If successful, Congress will take its first major step toward regulating stablecoins, aiming to balance consumer safeguards with room for digital innovation.