In a significant move for the cryptocurrency sector, the Senate passed the GENIUS Act with a decisive 68-30 vote on Tuesday evening, garnering bipartisan support. Eighteen Democrats joined most Republicans in endorsing the legislation, which establishes a federal regulatory framework for stablecoins—cryptocurrency tokens pegged to the value of the US dollar.
The backing from the Republican Party reflects a growing alignment with the crypto industry, particularly following the sector’s investment of over $131 million into Donald Trump’s presidential campaign in the past year. Only two Republicans, Senators Rand Paul of Kentucky and Josh Hawley of Missouri, voted against the bill, both known for their critical stance on Big Tech. The legislation will now advance to the House of Representatives, which is concurrently developing its own related bill, known as the STABLE Act.
The bill’s passage was not guaranteed. In May, nine Democrats who had initially supported the GENIUS Act reversed their positions, demanding revisions to its language. Shortly thereafter, Senators Elizabeth Warren (D-MA) and Ron Wyden (D-WA) thwarted an attempt to bring the bill to a floor vote, citing concerns related to ongoing controversies involving the Trump family’s crypto endeavors, including a contentious dinner for major holders of the memecoin $TRUMP.
Warren, who serves as the ranking member of the Senate Banking Committee and is a vocal advocate for consumer protection, ultimately opposed the finalized version of the GENIUS Act. During her speech on the Senate floor on June 11, she expressed serious concerns about the lack of regulatory safeguards, remarking, “It would make Trump the regulator of his own financial company and, importantly, the regulator of his competitors.”
Despite the hurdles, the passage of the GENIUS Act is viewed as a triumph for the rapidly evolving digital assets industry, which has invested heavily in political advocacy in Washington, including hiring political consultants and engaging with officials. Prior to the crucial vote, Seth Hertline, Head of Global Policy at the crypto wallet firm Ledger, described the significance of the GENIUS Act for the broader industry. “If the GENIUS Act derails, everything behind it derails,” he remarked to The Verge.