The GENIUS Act Isn’t Done Yet 

TLDR

• We thought the GENIUS Act was dead in the water. We were wrong.
• After the legislation failed last week, John Thune, the Senate Majority Leader, filed for it to be reconsidered.
• Crypto founders descended on DC to help get the bill passed, as stablecoin regulation is much needed and a start to overall crypto law to help push digital assets being considered a legitimate asset class.

On May 8th, the Guiding and Establishing National Innovation for US Stablecoins Act, better known as the GENIUS Act, fell short of passing the Senate by just one vote. The failure stirred up controversy, with much of the debate centered on President Donald Trump’s financial connections to the crypto industry. 

Yet, despite the standstill, proponents seem unwilling to shelve the bill. With lawmakers scrambling to revise it, another vote could happen within days. Here’s where things stand now and why the stakes are high for stablecoin regulation in the United States. 

Why Stablecoins Are on Congress’ Radar 

Stablecoins are pegged to the value of a “stable” reserve asset like the US dollar. They’re marketed as a solution for volatility, offering a bridge between the traditional financial system and decentralized blockchain networks. 

It’s also easier (and cheaper) to swap these for fiat currency in a transaction, making them ideal for debit cards, international business deals, and more.

But with growing adoption comes increasing scrutiny. Regulators have raised concerns about consumer protection, accountability, and how stablecoins impact the broader financial system. The GENIUS Act is a proposed framework to regulate stablecoins and create rules around their issuance and use in the United States.

Of course, regulating blockchain tech is no small feat, and the bill’s failure highlighted just how divided lawmakers remain on what that oversight should look like. 

The Trump Factor 

What overshadowed much of the GENIUS Act vote was its tie to an expected player in this debate: Donald Trump. The president and his family have deep financial ties to various crypto ventures, from meme coins to a crypto mining company. 

Democratic lawmakers have been vocal in demanding ethics provisions tied to Trump’s crypto activities. These conflicts of interest were significant enough to stall the GENIUS Act’s passage, with some Democrats holding their votes until Trump’s influence in the crypto space could be addressed. 

Source

The Trump connection is a political lightning rod for sure. But even after the bill’s failure, lawmakers appear eager to push forward. GENIUS is down, but it isn’t out.

GENIUS Act Redux 

Immediately following the failed vote, Senate Majority Leader John Thune filed a motion to reconsider the bill. This move essentially keeps the GENIUS Act alive and positions it for a new round of votes. 

On the Senate floor, discussions reopened on May 12, sparking speculation that a renewed version of the bill could hit the floor for consideration as early as this week. This momentum coincides with crypto leaders and stakeholders descending on Washington, DC, to rally for support around stablecoin regulation.

Source 

Brian Armstrong, the CEO of Coinbase, took to X and posted a video from the Capitol rotunda. He said up to 60 crypto founders were invited to lobby lawmakers to reconsider the GENIUS Act. 

Armstrong is one of many industry voices emphasizing the importance of quick legislative action. He’s noted the risks of further delays, warning that the US risks falling behind in the global race for crypto innovation. 

Changes to the Bill 

Amid the lobbying and political wrangling, some significant tweaks to the GENIUS Act have taken shape. According to Democratic Senator Kirsten Gillibrand and Republican Senator Cynthia Lummis, changes to the bill include removing provisions aimed specifically at Trump and his family’s crypto interests. 

“You’ll see emphasis on consumer protection, bankruptcy protection, and ethics,” Gillibrand said during a recent Stand With Crypto event. However, she was quick to clarify, “This isn’t an ethics bill. It’s about regulating stablecoins.” 

(Note…this isn’t the best stream we’ve ever seen. Skip to the last tenish minutes.)

By sidelining the Trump factor, the bill’s architects hope to regain bipartisan support and shift the focus back to its original intent. Still, critics question whether scrapping these provisions addresses deeper issues tied to potential conflicts of interest from lawmakers or stakeholders connected to crypto ventures. 

We’ve already said what we had to say about that…

What Happens Next? 

The timeline is tight, but if comments from supporters hold, the Senate is expected to retry the GENIUS Act vote before May 26, Memorial Day in the US. Success would birth a new era for stablecoin regulation and establish a regulatory framework for other nations to follow. 

But hurdles remain. The revisions may appease some Democrats who objected to the previous language, but deeply divided opinions on crypto itself continue to foster friction. The unpredictable dynamics of the industry loom large, even as the bill’s backers press forward. 

For crypto enthusiasts, regulators, and market participants alike, this week may set the course for stablecoin oversight in the United States. So call who you need to call. Email who you need to email. A lot of these guys are up for re-election soon. Let them know where your vote is going to go.

We Keep Pushing Forward 

The crypto industry refuses to die. The users refuse to take no for an answer. We will get there. WGMI. But we have to be diligent and make our voices heard. 

With growing adoption across industries, stablecoins in the financial ecosystem will only expand. Regulation is coming. It’s not a matter of if, but when lawmakers will finalize rules to govern the space. We want it to be now, of course. We’re degenerate crypto users. But we also need it to be right.

For now, we will keep a close eye on the Senate floor. The GENIUS Act isn’t done yet, but how it evolves will have massive implications for crypto’s future in the United States.