The US Senate's efforts to regulate stablecoin issuers, which experienced a sudden setback, are now poised to move forward once again with a revised version of the bill that could see procedural progress as soon as Thursday. A week ago, the Senate's stablecoin push encountered an obstacle when Democrats raised objections, primarily due to concerns over President Donald Trump's personal interests in the crypto industry. However, lawmakers have continued negotiations and are reported to be close to reaching an agreement on the updated text of the 'Guiding and Establishing National Innovation for US Stablecoins' (GENIUS) Act, according to sources familiar with the discussions. The proposed legislation aims to establish a federal regulatory framework for cryptocurrencies pegged to the value of another asset, such as Tether's USDT and Circle's USDC, with a similar bill currently making its way through the House of Representatives.
An earlier version of the bill had received bipartisan support in the Senate Banking Committee, giving the crypto sector confidence that it would face minimal resistance on the Senate floor. Nevertheless, the updated text failed to advance to the final stage, a process known as cloture, which requires the agreement of 60 senators to move legislation to an open floor debate. Every Democrat and two Republicans voted against it, leaving the stablecoin bill in a state of legislative limbo.
However, sources close to the negotiations have indicated that the bill may soon be back on track, with the next vote likely being a procedural action to allow lawmakers more time to negotiate the specifics of the bill rather than a cloture motion. One of the main points of contention for Democrats was President Trump's increasing involvement in the crypto industry, particularly after the announcement that Abu Dhabi-based investment firm MGX would acquire a stake in global exchange Binance using the USD1 stablecoin, which is linked to Trump and his children.
Although the revised bill's text has not been made public, it is unlikely to include provisions addressing this potential conflict of interest. Senator Gillibrand, a New York Democrat who has been working on crypto legislation for years, suggested that the latest version of the bill still does not directly focus on Trump, instead incorporating strong ethics requirements. She expressed optimism that a vote would take place soon. Senator Cynthia Lummis, the Republican chair of a digital assets subcommittee in the Senate and a frequent partner to Gillibrand on crypto regulation, argued that lawmakers should not be distracted by Trump's involvement and instead focus on establishing a clear regulatory structure in the US to support the growth of the industry.
Bo Hines, Trump's executive director for the President's Council of Advisers on Digital Assets, stated that negotiations are ongoing and indicated that he believes the legislation will continue to move forward.