Senate Stablecoin Drama Heats Up: GENIUS Act Faces Final Vote Amid Trump-Linked Controversy

The U.S. Senate has taken a major step toward federal regulation of stablecoins on Wednesday, voting 68-30 to invoke cloture on a substitute amendment to the GENIUS Act.

The move clears the way for a final vote on the legislation as early as Monday, unless Senate leaders agree to speed up the debate process.

Officially titled the “Guiding and Establishing National Innovation for U.S. Stablecoins Act,” the GENIUS Act proposes strict rules for stablecoin issuers. It would require all stablecoins to be fully backed by U.S. dollars or similarly liquid assets.

JUST IN: US Senate votes to move forward with stablecoin bill the GENIUS Act pic.twitter.com/EUWaUJeY0v

Issuers with more than $50 billion in market cap would be subject to mandatory annual audits. The bill also includes provisions around foreign-issued stablecoins.

Senate Banking Committee Chair Tim Scott, a Republican from South Carolina and one of the bill’s sponsors, called the vote a win for both innovation and national security.

“Let me be clear, this did not happen by accident. It happened because we led. To those who said Washington could not act… let’s prove them wrong,” Scott said, speaking before the vote.

The bill passed the procedural hurdle with bipartisan support, though some prominent Democrats opposed it. Senate Minority Leader Chuck Schumer, along with Senators Elizabeth Warren and Amy Klobuchar, voted no. Others, such as Senator Ruben Gallego of Arizona, voted in favor.

Opponents of the bill raised several concerns. Senator Warren criticized the chamber for not addressing proposed amendments and pointed to what she sees as deeper ethical issues tied to President Donald Trump.

“Through his crypto business, Trump has created an efficient means to trade presidential favors… By passing the GENIUS Act, the Senate is not only about to bless this corruption, but to actively facilitate its expansion,” she said, from the Senate floor.

Despite the criticism, the bill received backing from the Trump administration. A statement released Monday said that if the bill were presented to the president in its current form, his senior advisors would recommend signing it into law.

Trump has said he wants stablecoin legislation on his desk before August.

However, the bill’s future in the House is still unclear. The House Financial Services Committee passed its own version of stablecoin legislation in May, but the full House has yet to vote.

Differences between the Senate and House versions, particularly around oversight of foreign issuers and state-level regulation, still need to be resolved.

For now, all eyes are on Monday’s vote, which could mark a turning point in how the U.S. approaches stablecoin regulation.

As the Senate prepares for Monday’s final vote on the GENIUS Act, tensions around President Donald Trump’s deepening ties to crypto are fueling fresh debate on Capitol Hill.

The bill initially faced Democratic resistance over provisions concerning foreign issuers, AML standards, and the possibility of corporate stablecoin issuance, but a second cloture vote in late May passed 66-32, putting the bill on track for a final vote.

However, Trump’s expanding crypto empire has added a new layer of tension.

Over the past six months, Trump and his family have launched a series of crypto ventures, including World Liberty Financial, a digital asset platform listing Trump as “Chief Crypto Advocate.” The firm recently debuted a stablecoin, USD1, backed by U.S. Treasuries.

Trump-affiliated entities reportedly own a majority stake in the company and a large share of its tokens.

Additionally, the Trump family rolled out memecoins such as $TRUMP and $MELANIA, profiting from transaction fees despite extreme price volatility.

Democrats have raised conflict-of-interest concerns, especially after revelations that $TRUMP coin holders paid millions to attend a private gala with Trump.

Meanwhile, House committees have advanced a broader crypto regulatory bill, some members pushing to merge it with the stablecoin framework now before the Senate.

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