The Senate supports the GENIUS Act: 67 senators have backed the Crypto Bill; it now moves to the House for revisions.

The bill introduces stablecoin rules: All stablecoins must be backed 1:1 by U.S. dollar reserves; KYC and AML policies are mandatory.

Trump’s USD1 stablecoin raises concerns: The bill does not regulate presidential family projects; Democrats fear potential conflicts.

The U.S. Senate is preparing to approve the GENIUS Act, a major crypto bill aimed at regulating stablecoins across the country. With 67 senators backing the bill, it now heads to the House for expected revisions. Lawmakers anticipate final changes that could impact broader financial sectors, including digital asset services.

Lawmakers Question Gaps in Crypto Bill

The Crypto Bill requires the backing of all stablecoins with asset reserves held in the United States dollar and further enhanced identity verification practices. Nevertheless, it actively ignores and does not govern USD1, a stablecoin associated with Donald Trump’s decentralized finance project. The bill also prohibits lawmakers from profiting from stablecoins; however, it does not apply to presidential families.

That same gap has caused Democrats to express apprehension, particularly as Trump forms an increasing presence in the digital finance arena. Senator Angela Alsobrooks observed that the Crypto Bill was bipartisan, but she pointed out that some enforcement provisions were missing. Her biggest concern was the conflict of interest that might arise whenever there are presidential financial undertakings.

Senator Elizabeth Warren attacked the Crypto Bill for not being able to prohibit what she termed unregulated power by the Trump project. Another danger she raised was the possibility of big enterprises like Amazon and Meta entering the stablecoin market. Legislators now hope that the House amendments will deal in detail with transparency and conflict-of-interest provisions.

GENIUS Act Gains Ground Despite Internal Disagreements

Several Democrats have also thrown their support behind the Crypto Bill, although the main opposition is held by Democrats who voted against the legislation. Mark Warner and Adam Schiff, high-profile Democrats, have recently changed their position, turning now to a regulatory solution in order to stabilize the market. The Senate has now acquired a 53-47 majority to pass the bill.

According to the U.S. Treasury, the stablecoin market may attain a level of 2 trillion by 2028 if the Crypto Bill is adopted. Lawmakers in the Senate consider this regulation necessary to compete against foreign financial technologies. It is expected that the House will make new changes before the final draft arrives at the president’s desk.

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Filed under: Bitcoin - @ June 18, 2025 3:00 am