The return of the US Senate brings focus to a pivotal moment for the cryptocurrency industry: the potential passage of the Genesis Act (S.4268). After gaining critical Democratic support and navigating a procedural challenge, the landmark stablecoin legislation appears on track for approval.
The bill cleared a crucial hurdle with a 66-32 vote on May 19, securing the fast-track status necessary for swift consideration, with a likely floor vote before the August recess.
Significant Revisions to Secure Support
However, the current bill has undergone substantial modifications since its introduction in March to secure the backing of Democrats and some Republican skeptics. Initial opposition, particularly from Senator Elizabeth Warren, centered on concerns that the bill failed to adequately protect consumers and national security from crypto risks.
The strength of the initial opposition delayed the bill’s fast-track status in early May, highlighting the need for amendments.
How has the Genesis Act changed? According to Senate Democrats, key regulatory and consumer protections have been strengthened. The legislation extends existing federal financial product laws to encompass stablecoins.
These consumer safeguards will be enforced by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). Notably, the CFPB has faced budget threats from the Trump administration and its allies. The stablecoin industry itself had previously criticized the CFPB’s regulatory role.
Mitigating Misleading Claims
The bill prohibits stablecoin issuers from misleading the public by claiming their tokens are insured by the Federal Deposit Insurance Corporation (FDIC).
To prevent associations with government backing, the legislation explicitly bans stablecoin issuers from using terms like “United States,” “US,” or “USG” in their branding or marketing materials. The reference to “full faith and credit” targeting further emphasizes these provisions.
Bipartisan Efforts and Remaining Resistance
The compromise measures have sidelined enough Republican opposition to enable bipartisan progress. Democratic Sens. Ruben Gallego (AZ) and Mark Warner (VA) ultimately supported the revised bill.
Despite these changes, the bill does not yet satisfy all concerns. Senator Warren retains opposition, citing unresolved issues related to potential conflicts of interest, specifically referencing the Trump family’s own cryptocurrency ventures, which some critics label “open corruption.”
Given the favorable vote tally, the Genesis Act seems poised for near-certain Senate passage in the coming weeks, following its expected consideration by the House of Representatives.
