US Senate Crypto Bill: Stablecoin Regulation Updates for May 19, 2025

As of May 19, 2025, in Washington, D.C. (EDT), the US Senate crypto bill, known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, is making headlines after a critical procedural vote. On May 19, the Senate voted 66-32 to advance the bill, surpassing the 60-vote threshold needed to move toward a final vote, according to CBS News. This follows a setback on May 8, when the bill failed 48-49 due to Democratic concerns over insufficient oversight and ties to controversial crypto ventures.

The GENIUS Act, introduced by Senator Bill Hagerty (Republican from Tennessee) and backed by Democrats like Senator Kirsten Gillibrand (Democrat from N.Y.), regulates stablecoins, i.e. digital currencies pegged to assets like the US dollar, used in the $250 billion stablecoin market for trading and payments. The bill requires:

• Asset Backing: Issuers must hold ull reserves to support stablecoins.

• Regulation: Stablecoins over $10 billion are overseen by the Federal Reserve (banks) or the Office of the Comptroller of the Currency (OCC) (non-banks); smaller ones are state-regulated.

• User Protections: Safeguards against fraud or issuer insolvency.

A revised draft, shared on May 16, strengthened anti-money laundering and consumer protections, winning over 16 Democrats, including Mark Warner (D-Va.) and Cory Booker (D-N.J).

Senator Elizabeth Warren (D-Mass.), a vocal critic, opposes it, warning it enables corruption tied to President Trump’s family and their $2 billion World Liberty Financial deal with an Abu Dhabi fund. This short video include her primary concerns:

Criticality of this Bill

Stablecoins are crucial for crypto markets, enabling fast, stable transactions in DeFi and global payments. Without regulation, risks like the 2022 TerraUSD crash loom large. Hagerty, appearing on CNBC’s “Squawk Box” on May 19, 2025, argued that the US risks losing innovation to Europe, where the Markets in Crypto-Assets (MiCA) framework regulates stablecoins as of January 2025. The US Senate crypto bill aims to keep the US competitive while protecting consumers.

The crypto industry, which spent $119 million on 2024 elections per Reuters, sees the bill as vital. The 66-32 vote, with bipartisan support, suggests a path to passage, though Warren and Republicans like Rand Paul (R-Ky.) remain hurdles.

Other Crypto Laws in Play

The US Senate crypto bill operates alongside other efforts:

• House Bills: Representative French Hill (R-Ark.) introduced a stablecoin bill on February 6, 2025, to align with GENIUS, per Elliptic. The House also passed H.J.Res.25 in March 2025, repealing a Biden-era IRS crypto tax rule with 76 Democratic votes.

• Senate Alternatives: The Lummis-Gillibrand Payment Stablecoins Act and the Financial Innovation and Technology for the 21st Century Act (FIT21) tackle broader crypto oversight but trail GENIUS in progress. Senator Cynthia Lummis (R-Wyo.) pushes a bitcoin reserve bill, stalled by funding issues.

• Global Landscape: Europe’s MiCA and UK digital currency pilots set a high bar, while the Trump administration opposes a US central bank digital currency (CBDC).

The GENIUS Act’s focus on stablecoins makes it more likely to pass than broader bills, though Warren’s End Crypto Corruption Act, targeting official crypto ventures, continues to add pressure.

Challenges and Support

The bill faces vocal critics and strong backers:

• Critics: Warren and Jeff Merkley (D-Ore.) argue it enables corruption and lacks robust consumer protections, with Warren who continues to echo concerns about rushed negotiations.

• Supporters: Hagerty and Senate Majority Leader John Thune (R-S.D.), who strategically voted “no” on May 8 to allow reconsideration, praise its balance. Industry leaders, see it as key to US crypto leadership.

Negotiators like Senator Ruben Gallego (D-Ariz.) are refining the text, with Gallego noting on May 14 that a deal needs time, per POLITICO. The crypto industry’s lobbying underscores the stakes.

What Happens Next?

The US Senate crypto bill’s next steps are:

• Final Vote: A full vote could occur within days though the Memorial Day recess may delay it to June.

• Amendments: Democrats seek to strengthen oversight, while Thune demands no weakening provisions.

• House Sync: Senate passage requires alignment with the House’s stablecoin bill for enactment.

The May 19 procedural win, enabled by Thune’s earlier motion, keeps the bill alive, but Warren’s opposition could force further tweaks.

The US Senate crypto bill’s 66-32 vote on May 19, 2025, marks progress toward regulating the $250 billion stablecoin market, with bipartisan backing from 16 Democrats and most Republicans. Yet, critics like Warren highlight risks tied to crypto influence, and final passage hinges on resolving oversight disputes. With the industry pushing hard, the bill could shape US crypto leadership.

FAQs About the US Senate Crypto Bill

1. What’s the US Senate crypto bill trying to do?
The GENIUS Act regulates stablecoins, ensuring issuers have full reserves, face oversight, and protect users from fraud or collapse.

2. Why didn’t the US Senate crypto bill pass on May 8?
It failed 48-49 due to Democratic worries about weak anti-money laundering rules and Trump’s crypto connections.

3. What’s new with the US Senate crypto bill on May 19, 2025?
A 66-32 procedural vote advanced a revised draft with better oversight, gaining 16 Democratic votes for a potential final vote soon.

4. How does this bill compare to other crypto laws?
It’s narrower than FIT21, focusing on stablecoins. House bills and Europe’s MiCA are similar but broader in scope.

5. Will the US Senate crypto bill help crypto investors?
It could stabilize the $250 billion stablecoin market, boosting confidence, but weak oversight could pose risks. Check the final text before investing.