The U.S. Senate’s efforts to regulate stablecoin issuers are once again gaining momentum, as insiders hint at the resurrection of the GENIUS Act on the legislative floor. After a turbulent period marked by political wrangling and concerns over former President Donald Trump’s crypto dealings, a freshly revised version of the bill may soon see procedural movement, possibly as early as this Thursday.
A Political Tightrope
The GENIUS Act, aimed at establishing a federal framework for stablecoins like Tether’s USDT and Circle’s USDC, hit a snag last week. Democrats raised objections tied to Trump’s crypto ventures, particularly following MGX’s acquisition of a Binance stake using USD1, a stablecoin tied to Trump’s business interests. Despite the setbacks, negotiations persisted, and sources close to the talks suggest that a compromise is within reach. This development aligns with the broader legislative momentum, as detailed in U.S. Senate Moves Toward Action on Stablecoin Bill.
A previous iteration of the bill sailed through the Senate Banking Committee with bipartisan backing earlier this year, buoying hopes within the crypto sector for a smooth passage. However, the Senate’s failure to advance the bill to a floor debate—requiring a 60-vote supermajority—left it in legislative limbo. In a strategic twist, Senate Majority Leader John Thune withdrew his support at the eleventh hour, a move designed to keep the legislative process alive.
The Trump Factor
One of the sticking points in the negotiations has been Trump’s increasing entanglement with the crypto sphere. Yet, according to sources, the bill’s latest language likely sidesteps this potential conflict of interest. Senator Kirsten Gillibrand, a New York Democrat long involved in crypto legislative efforts, remarked at a recent Stand With Crypto event that while the bill includes robust ethics requirements, it doesn’t explicitly target Trump’s business dealings. This echoes the ongoing narrative surrounding Trump’s crypto activities, such as World Liberty’s Stablecoin Will Be Used to Close MGX’s $2B Binance Investment: Eric Trump.
“This isn’t an ethics bill,” Gillibrand commented, adding a touch of optimism about the bill’s prospects. “I’m very optimistic we will have a vote soon enough.”
Regulatory Clarity vs. Distraction
Senator Cynthia Lummis, a Republican and staunch advocate for crypto regulation, urged lawmakers not to be sidetracked by Trump’s involvement. At the same event, she stressed the importance of establishing a regulatory framework that could bolster the U.S. dollar’s status as the world’s reserve currency. “I don’t want the fact that President Trump’s name comes up in relation to this to distract us from the important goal,” Lummis asserted.
Meanwhile, Bo Hines, a key figure in Trump’s circle and executive director for the President’s Council of Advisers on Digital Assets, hinted at ongoing negotiations during CoinDesk’s Consensus 2025 conference in Toronto. While he stopped short of confirming a vote, his parting words—”We shall see”—left room for optimism.
What Lies Ahead?
As the Senate prepares for another potential showdown, the crypto industry watches with bated breath. The implications of the GENIUS Act are profound, offering the prospect of a more structured and secure environment for stablecoins in the U.S. However, the path to enactment is fraught with political landmines and the ever-present specter of Trump’s business entanglements.
The coming weeks could prove pivotal, not just for the GENIUS Act but for the broader trajectory of U.S. crypto regulation. With negotiations reportedly nearing a conclusion, the Senate’s next moves will be closely scrutinized by stakeholders on all sides. Whether the bill will finally break free from its legislative purgatory remains an open question—one that could shape the landscape of digital assets for years to come.
Source
This article is based on: U.S. Senate’s Stablecoin Push Still Alive as Bill May Return to Floor: Sources
Further Reading
Deepen your understanding with these related articles:
- U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer (openai)
- Trump’s Crypto Sherpa Bo Hines Says Crypto Legislation on Target for Quick Completion
- Ripple Offered $4B-$5B for Stablecoin Issuer Circle: Bloomberg
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
