Key Takeaways
- Senate Republicans aim to vote on the GENIUS stablecoin bill by May 20.
- The bill mandates 1:1 backing with cash or Treasuries and monthly attestations.
- Senator Warren and over 20 banking groups oppose the bill over systemic risk concerns.
Senate Republicans are pressing ahead with plans to pass the first major federal stablecoin regulation before the Memorial Day recess.
The GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—could come to a full Senate vote as soon as May 20.
Key provisions of the GENIUS Act
Introduced by Senators Bill Hagerty, Cynthia Lummis, and Tim Scott, the bill seeks to enforce 1:1 backing of stablecoins with cash or Treasuries and require monthly attestations.
Larger issuers would fall under Federal Reserve oversight, while smaller players could still operate under state regulations.
Support & legislative progress
Senator Hagerty said:
I look forward to passing the GENIUS Act in short order to keep digital-asset innovation in America, protect customers, and make sure foreign companies are playing by the same rules.
The proposal passed the Senate Banking Committee in March with an 18-6 bipartisan vote.
Supporters argue the legislation will help preserve the dollar’s dominance and provide legal clarity in the growing $241 billion stablecoin market, currently dominated by Tether and Circle.
Opposition & challenges
Opposition has mounted from progressive Democrats and banking groups.
Senator Elizabeth Warren criticized the bill, warning it could let big tech firms issue their own stablecoins.
Over 20 community banking organizations have also voiced concerns about risks to traditional deposits.
Path to Senate approval
Despite Republican control of the Senate, the bill needs support from at least seven Democrats to clear the 60-vote threshold.
Even if passed, reconciling it with a stricter House version may extend negotiations into summer.
