GENIUS Bill Passes Key Votes; 16 Democrats Support It

The U.S. Senate has passed a crucial cloture vote on the Guiding Efforts and Nurturing Innovative Stablecoin Upgrades Systematically (GENIUS) Act. The bill passed with 66 votes in favor and 32 votes against.

However, the bill has not yet been enacted into law. It will move to the Senate floor for discussion and possible amendments.

GENIUS Act Passes Cloture Vote

The highlight of the cloture vote was that 16 Democrats changed their votes to support the bill. This is a significant change favorable to the GENIUS Act.

According to Eleanor Terrett, a journalist and host of Crypto In America, the bill will move to the Senate tonight or Wednesday.

"Republican leaders hoped to get a final passage vote before Memorial Day next week, but it is currently uncertain whether that will be possible," Terrett mentioned.

Faryar Shirzad, Coinbase's policy chief, described the vote as a "historic early victory". He emphasized that many steps remain, but this move brings stablecoin legislation closer to reality.

"Crypto is once again showing it is the most bipartisan issue in Congress," Shirzad wrote.

Bill Hagerty, the bill's sponsor, also expressed an optimistic view. He predicted that the GENIUS Act could increase demand for U.S. Treasury bonds by over $1 trillion, which could strengthen the nation's financial system.

"The GENIUS Act will propel the United States to the fastest digital payment framework possible. This will ensure the dominance of the U.S. dollar," Senator Hagerty posted.

However, the bill has also faced strong criticism. Senator Elizabeth Warren, a senior member of the Senate Banking Committee, cited a Nobel Prize-winning economist to warn of systemic risks.

"We urgently need strong regulatory oversight of stablecoins. The GENIUS Act lacks basic provisions to maintain financial stability and will increase systemic risks due to insufficient safeguards against stablecoin runs and foreign issuers," economist Simon Johnson stated.

Cryptocurrency commentator Richard Hart also raised scathing criticism. He argued that the GENIUS Act would force stablecoins into the traditional banking system. He claimed the bill would ban decentralized stablecoins, limit issuance to licensed banks and partners, and not provide interest to holders, thereby suppressing decentralized finance innovation.

"This is a *stablecoin crackdown* that could protect existing players and suppress DeFi innovation. USDC, USDT, DAI," Hart said.

The cloture vote was a procedural victory but revealed deep divisions. Currently, the final passage of the bill remains uncertain. As the Senate prepares for a decisive vote, the debate on stablecoin regulation continues to intensify, which will have far-reaching implications for the future of digital finance in the United States.