The Senate passed the GENIUS Act on Tuesday with a 68-30 vote, marking the first major federal legislation aimed at regulating digital assets. The bill sets the initial regulatory framework for stablecoin issuers.
Senators from both parties backed the bill, with 18 Democrats joining most Republicans in favor. Only two Republicans, Sens. Rand Paul and Josh Hawley, opposed it.
Sen. Bill Hagerty (R-Tenn.), the bill’s author, called the legislation a critical step for the U.S. to lead in cryptocurrency innovation. He said it would strengthen the U.S. dollar, protect consumers, and boost demand for Treasury securities.
The bill now moves to the House, where bipartisan efforts are underway on a similar digital asset regulatory proposal.
Earlier attempts to pass the bill faced opposition due to concerns over national security and anti-money laundering measures. A bipartisan group of senators negotiated amendments to address these issues, adding consumer protections, restrictions on technology companies issuing stablecoins, and ethics rules for government employees.
These revisions increased Democratic support, allowing the bill to surpass the 60-vote threshold on the Senate floor.
Despite the progress, some Democrats expressed concerns the bill does not sufficiently block politically exposed individuals, including former President Donald Trump and his family, from engaging in crypto activities. Financial disclosures show Trump earned $57.3 million last year from his family’s cryptocurrency business.
Sen. Elizabeth Warren (D-Mass.) criticized the legislation as favoring industry interests and lacking robust safeguards against illicit stablecoin use by criminals. While it prohibits members of Congress and senior officials from issuing payment stablecoins while in office, Warren said the bill still falls short in protecting national security.