The United States is moving ahead in embracing and legitimizing cryptocurrency. A landmark Senate cryptocurrency legislation cleared another procedural hurdle on Wednesday, inching the upper chamber closer to a vote on final passage following weeks of delays and hiccups.
The U.S. Senate is currently considering two bipartisan bills that aim to regulate stablecoins: the GENIUS Act and the Lummis-Gillibrand Payment Stablecoin Act. The GENIUS Act, introduced in 2025, seeks to define and regulate payment stablecoins—digital assets pegged to a fixed value like the U.S. dollar. It requires issuers to obtain state or federal licenses and to maintain appropriate reserves.
For large issuers (over $10 billion), the bill brings federal oversight via the Federal Reserve and the OCC. It also bans algorithmic stablecoins, citing concerns about financial stability.
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The bill passed an early procedural vote in the Senate with bipartisan support, though it has faced criticism for potentially weak anti-money laundering provisions and political concerns tied to cryptocurrency interests linked to figures like Donald Trump.
According to Politico, the upper chamber voted 68-30 to move forward on a substitute amendment that includes an array of changes to the original bill Republicans agreed to last month in order to win over the Democratic support necessary to pass the legislation.
Sen. Bill Hagerty (R-Tenn.), who leads the bill said on the Senate floor that the legislation takes a common-sense, bipartisan approach when it comes to regulating stablecoins.
In contrast, the Lummis-Gillibrand Payment Stablecoin Act emphasizes consumer protection, clear reserve requirements, and a dual regulatory structure that allows for both state and federal oversight. It prohibits unbacked and algorithmic stablecoins and mandates compliance with U.S. sanctions and anti-money laundering laws. This legislation has drawn support from federal financial regulators, including Treasury Secretary Janet Yellen and Fed Chair Jerome Powell.
Together, these bills mark a significant step toward a unified regulatory framework for stablecoins in the U.S., though political challenges remain.
Politico also reported that eighteen Democrats broke with Warren and Minority Leader Chuck Schumer (D-N.Y.) to advance the motion Wednesday — including Sens. Andy Kim of New Jersey and John Hickenlooper of Colorado, who voted “no” on the last procedural motion on the bill.
Majority Leader John Thune (R-S.D.) said on the Senate floor Wednesday that “it’s time to move forward and pass this legislation.”
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“The version of the GENIUS Act that we will invoke cloture on today reflects months of hard work and negotiations from members on both sides of the aisle,” he said.
Sen. Lisa Blunt Rochester (D-Del.), who had been a supporter of the previous procedural motion, also flipped her vote to a “no” on Wednesday.
The passing of a stablecoin bill would mark a major step toward integrating digital currencies into the U.S. financial system with clear rules and protections. It would provide legal certainty for stablecoin issuers, help prevent fraud, and protect consumers by requiring one-to-one backing and banning risky algorithmic coins. The law would also strengthen oversight by federal and state regulators, reducing the risk of financial instability.