The Senate has moved one step closer to passing landmark cryptocurrency legislation, with a significant procedural hurdle cleared on Wednesday. The upper chamber voted 68-30 to move forward on a substitute amendment to the original bill, which includes a range of changes aimed at securing bipartisan support. This development brings the legislation closer to final passage, following weeks of delays and procedural setbacks.
The bill, which is led by Sen. Bill Hagerty (R-Tenn.), would create the first-ever U.S. regulatory framework for stablecoins, digital tokens pegged to the value of the dollar. Hagerty argued on the Senate floor that the legislation takes a common-sense, bipartisan approach to regulating stablecoins, reflecting a growing recognition of the importance of digital assets in the financial system.
Despite bipartisan momentum, Democrats remain divided on the issue. Sen. Elizabeth Warren, the party’s lead on the Senate Banking Committee, has been a vocal opponent, criticizing the bill as riddled with loopholes and weak safeguards for consumers, national security, and financial stability. However, eighteen Democrats broke with Warren and Minority Leader Chuck Schumer (D-N.Y.) to advance the motion, including several who had previously voted ‘no’ on prior procedural votes. Notably, Sen. Lisa Blunt Rochester (D-Del.) flipped her position on Wednesday, supporting the motion after she had voted ‘no’ on the previous procedural motion.
The vote marks a significant step toward the Senate adopting the new base text of the bill and beginning the process of voting on the underlying legislation later this week. As the path to final passage remains uncertain, Majority Leader John Thune (R-S.D.) has tried for weeks to strike a deal on amendments that would allow for a quicker vote on final passage. However, complications have arisen with Sen. Roger Marshall (R-Kan.)’s push to attach controversial legislation aimed at cracking down on credit card swipe fees, which supporters of the crypto bill fear could become a ‘poison pill’ to the underlying legislation.
With no further amendments appearing likely, the Senate may vote as early as Monday for final passage of the bill. Thune reiterated in a speech on the Senate floor that it’s time to move forward and pass the legislation, emphasizing that the version of the GENIUS Act that will be invoked cloture reflects months of hard work and negotiations from members on both sides of the aisle. As the legislative process continues, the bill’s passage could set a precedent for regulating digital assets in the U.S. financial system, with potential implications for the broader cryptocurrency market.