The US Senate has revived landmark stablecoin legislation, with the GENIUS Act clearing a crucial procedural vote Monday evening just two weeks after its apparent death on the Senate floor.

Senators voted 66-32 to advance the bill, easily surpassing the 60-vote threshold needed to end debate and move toward final consideration.

The unexpected turnaround represents a shift in political dynamics.

The bill failed earlier this month after key Democratic co-sponsors pulled their support, dealing a blow to Republican leaders.

Read: Washington’s Crypto Moves Face Political Roadblocks 🚧

What changed?

A heated two weeks of negotiations produced a revised draft with new provisions addressing Democratic concerns about conflicts of interest, national security protections, and Big Tech’s potential involvement in the space.

Five key Democratic senators — Ruben Gallego (Arizona), Mark Warner (Virginia), Lisa Blunt Rochester (Pennsylvania), Kirsten Gillibrand (New York), and Angela Alsobrooks (Maryland) — flipped their votes to support the measure after previously opposing it.

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The bill’s initial failure stemmed partly from mounting Democratic concerns over President Donald Trump’s deepening ties to cryptocurrency ventures. Trump’s family has launched various crypto projects, including a stablecoin called USD1 that has rapidly become the seventh-largest by value.

“We cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay. If American lawmakers don’t shape it, others will—and not in ways that serve our interests or democratic values,” Senator Mark Warner acknowledged these concerns before supporting the bill.

The revised bill prohibits senior executive branch officials from launching stablecoins, but exempts the president and vice president, leaving the Trump-related concerns only partially addressed.

What’s in the Bill?

The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) would

• Require stablecoins to be fully backed by US dollars or similarly liquid assets
• Mandate annual audits for issuers with more than $50 billion in market capitalisation
• Establish a framework for legally issuing stablecoins in the United States
• Restrict algorithmic stablecoins
• Include consumer protection provisions and anti-money laundering standards

Senate Banking Committee Democrats have released a critical staff analysis of the latest draft of the GENIUS Act.

The report labels the draft a potential roadmap for “Trump crypto corruption” and increased Big Tech control over digital currencies.

Staffers call for further revisions, highlighting several major concerns,

• The bill doesn’t prohibit Trump from financially benefiting through his own stablecoin.
• It allows Elon Musk’s X platform to launch its own digital currency, “X Money.”
• It widens existing loopholes for Tether, which could facilitate use by criminals and terrorist groups.
• It lacks adequate consumer protections and financial safety measures.

Five Democrats who opposed this bill two weeks ago now support it despite these warnings.

Not everyone is convinced by the eleventh-hour changes.

Senator Elizabeth Warren strongly criticised the bill before the vote.

“Trump and his family have already pocketed hundreds of millions of dollars from his crypto ventures, and they stand to make hundreds of millions more from his stablecoin, USD1, if this bill passes, the GENIUS Act will accelerate Trump’s corruption by supercharging the size of the stablecoin market,” Warren argued.

The stablecoin bill’s resurrection comes amid heightened industry lobbying.

Coinbase, which previously hesitated to support standalone stablecoin legislation, ramped up pressure in recent days, sending in-app notifications urging users to contact their senators, according to Decrypt.

The crypto exchange’s political action organisation, Stand With Crypto, said it would lower politicians’ ratings if they voted against the bill — leveraging the $300 million raised last year for pro-crypto super PACs.

If passed by the Senate, the GENIUS Act would need House approval before reaching Trump’s desk.

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