The US Senate is poised to hold a critical vote on the GENIUS Act on June 17, a crucial piece of legislation designed to establish regulatory guidelines for stablecoins. This development follows the Senate’s recent decision to conclude debate on the bill, which aims to create legal clarity for dollar-backed cryptocurrencies.
Stablecoin Legislation Advances Amid Controversy
In a show of bipartisan support, a small group of Democrats joined most Republicans in advancing the bill toward a final vote, expected early next week. Before this step, the legislation had to clear several smaller procedural votes.
However, not all voices in the Senate are in favor of the stablecoin bill. Senator Jeff Merkley (D-Ore.) has raised concerns about the potential for corruption linked to President Trump and his family’s growing involvement in the cryptocurrency industry.
Merkley attempted to introduce an amendment aimed at combating corruption among federal elected officials, arguing that the current legislative climate allows for unprecedented levels of influence peddling.
“This is the US government for sale in a way we’ve never seen,” Merkley stated during a floor speech. He criticized the timing of the stablecoin bill, emphasizing the ethical implications of lawmakers engaging in cryptocurrency ventures while debating regulatory frameworks.
Merkley’s amendment was largely rejected along party lines, with all Democrats supporting it and nearly all Republicans opposing it, except for Senator Rand Paul (R-Ky.), who has consistently voted against the GENIUS Act.
Complementing GENIUS Act Efforts
Senate Majority Leader John Thune (R-S.D.) initially promised an open amendment process for the bill. However, as contentious amendments threatened the legislation’s viability, Thune shifted strategies, opting for a vote on a revised version of the bill that was negotiated between crypto-friendly Democrats and Republicans.
The updated GENIUS Act gained the support of Senators John Hickenlooper (D-Colo.) and Andy Kim (D-N.J.) but lost the backing of Senator Lisa Blunt Rochester (D-Del.), who expressed a desire for further changes in the future. Blunt Rochester had previously supported the bill in both the Senate Banking Committee and on the Senate floor.
As the GENIUS Act moves toward a final vote, another significant piece of legislation, the Digital Asset Market Clarity Act, is also gaining momentum in the House.
This bill seeks to allocate oversight of the broader cryptocurrency market between two financial regulators and recently advanced out of two House committees.
Both the Trump administration and Republican leaders are reportedly eager to finalize the stablecoin and crypto market structure bills before lawmakers begin their August recess.
Featured image from DALL-E, chart from TradingView.com
