Senate to Take Another Shot at Stablecoin Bill
The updated legislation has added scrutiny for big tech and avoids targeting Trump's crypto ventures.
The Senate's stablecoin bill, dubbed the GENIUS Act, is getting a second chance at life after last week's collapsed vote, with negotiators claiming they're "90% there" on a deal. The remaining 10%? Well, there’s a lot happening there.
After failing to secure a single Democratic vote for cloture last week, Senate Republicans have been working overtime to salvage what was supposed to be a slam-dunk for the crypto industry.
The revised bill includes new language on ethics, Big Tech limitations, and foreign issuers, but conspicuously avoids directly addressing US President Donald Trump's crypto ties.
"We're willing to vote for cloture, but we haven't gotten guarantees," a source familiar with negotiations told The Block. "We need guarantees from them [Republicans] that they're going to keep the negotiations going."
Senate Majority Leader John Thune has scheduled a new cloture vote for Monday evening, setting up a high-stakes showdown after Memorial Day weekend.
What's New in the Bill?
The draft making rounds on Capitol Hill shows some Democratic wins, though critics argue they lack teeth:
Special government employees (like Elon Musk) would be banned from issuing stablecoins, but the President and Vice President remain exempt
Big Tech companies would face additional scrutiny before issuing stablecoins and restrictions on using transaction data, but with significant loopholes
Foreign issuers would face tighter anti-money laundering requirements, yet determinations would be left to Trump-appointed Treasury Secretary Scott Bessent
The Trump Factor
Perhaps the most glaring omission in the revised text is any direct limitation on Trump's family crypto interests through World Liberty Financial, which recently announced a $2 billion stablecoin deal with the UAE government.
Read: Trump's Crypto Ventures
Sen. Kirsten Gillibrand said, Trump's crypto engagement is "already illegal…It's not an ethics bill per se, and if we were dealing with all of President Trump's ethics problems, it would be a very long and detailed bill."
The Clock Is Ticking
With the Memorial Day recess looming, lawmakers are racing against time. Sen. Cynthia Lummis called a vote by Memorial Day a "fair target," while others suggest early next week is more realistic.
The bill's fate hinges on whether Democrats believe the concessions go far enough to warrant their support. Consumer advocates remain sceptical.
"Pushing this through on an arbitrary deadline because the crypto industry is breathing down your neck is not a good way to make policy," said Mark Hays of Americans for Financial Reform. "And it's especially bad when that policy could further enable and enrich the president."
For the crypto industry, this legislation represents the regulatory clarity that's been elusive for years. For politicians, it's a test of whether bipartisanship can overcome the gravitational pull of Trump's controversial business interests.
If the bill passes Monday's cloture vote, expect institutional players to accelerate their stablecoin plans, potentially unlocking billions in new capital flow. If it fails again, the industry faces a sobering reality check about the limits of even a crypto-friendly administration's ability to overcome partisan divides.
Either way, the GENIUS Act saga shows that in Washington, getting to 90% agreement might be the easy part, it's the final 10% that separates legislation from law.