Stablecoin Bill Nears Senate Vote: Trump Concerns Dropped, Focus on Regulation
The US Senate is on track to pass a key bipartisan stablecoin bill as early as next week, marking a significant step forward in crypto regulation. The bill, known as the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), has seen a shift in focus away from language targeting President Donald Trump‘s extensive crypto interests.
Senator Cynthia Lummis, a Republican championing the bill, expressed confidence in its passage by Memorial Day (May 26th), while Senator Kirsten Gillibrand, a Democrat, confirmed the removal of provisions aimed at Trump‘s various crypto ventures. Gillibrand emphasized the bill‘s revised focus on consumer protection, bankruptcy provisions, and ethical considerations, noting that the initial language was “refined” to address concerns beyond basic structure and issuer requirements.
The bill‘s earlier iteration had stalled due to concerns from Democratic senators, who questioned its effectiveness in tackling potential conflicts of interest related to Trump‘s involvement in various crypto projects, including memecoins, a cryptocurrency platform, a stablecoin, and a crypto mining company slated for public listing. Gillibrand had previously stated that Trump‘s issuance of a memecoin was potentially illegal under current law.
Crypto Industry Urges Swift Passage Ahead of Midterms
The crypto industry is advocating for the swift passage of the GENIUS Act, along with a separate Republican-drafted crypto market structure bill, before the 2026 midterm elections. The Blockchain Association, a leading crypto lobby group, has highlighted the narrow window of opportunity before the election cycle intensifies. Marta Belcher, the association’s president, expressed concerns about the possibility of a future administration less favorable to crypto, making the current window crucial for legislative progress.
The urgency is further underscored by the upcoming August congressional recess, with concerns that legislative momentum could falter once the midterm election calendar kicks in. Bo Hines, the executive director of the Presidential Council of Advisers for Digital Assets, indicated that Trump aims to sign both stablecoin and market structure legislation before the August break.
The passage of these bills would mark a significant step towards establishing a clearer regulatory framework for the burgeoning crypto space. While the focus has shifted from targeting Trump‘s specific activities to broader consumer protection and ethical considerations, the urgency for passing this legislation remains, particularly in light of the approaching midterm elections and the possibility of a future administration that could be less supportive of the crypto industry.
It remains to be seen how this shift in focus will impact the final passage of the bill. The crypto community is eagerly awaiting the Senate vote, hoping for clarity and stability in an industry that has been grappling with regulatory uncertainty for some time.
