Senate eyeing second vote on stablecoin bill after revised text

Senators are expected to hold another vote Monday night on advancing the GENIUS Act, a bill that would set the first U.S. rules for stablecoins.

The renewed effort follows a failed vote earlier this month after Democrats raised concerns about the bill’s potential loopholes.

The revised bill includes language that would limit Big Tech firms like Meta from issuing stablecoins without special approval. 

However, the update has not satisfied key progressives, including Sen. Elizabeth Warren, who argues that the legislation still enables Trump-based crypto corruption.

Her concern centers on the Trump family’s ties to World Liberty Financial, which has launched a dollar-backed stablecoin, USD1.

Stablecoin legislation

The GENIUS Act would require stablecoin issuers to hold reserves in safe assets such as Treasury bills, comply with anti-money-laundering laws, and ensure consumer priority in the event of bankruptcy. 

Stablecoins like Tether’s USDT (USDT) and Circle’s USDC (USDC) underpin much of the $3.3 trillion crypto trading market.

Some Democrats remain uneasy about the potential for stablecoins to become gateways for tech giants into banking, while crypto advocates argue the bill is a crucial first step in modernizing U.S. financial infrastructure. 

Industry groups say failure to pass the bill would further delay clearer regulation for crypto exchanges and token issuers—legislation that remains more controversial.

The bill is expected to have an easier path in the House. Still, even if the Senate clears this hurdle, broader crypto regulation may face stronger headwinds amid growing scrutiny of former President Trump’s financial ties to the sector.