US Senate likely to vote on the stablecoin GENIUS Act by Memorial Day as Brazil considers stringent regulations
- US Senators Kirsten Gillibrand and Cynthia Lummis are optimistic that the Senate will vote on the revised stablecoin bill by Memorial Day.
- The revised stablecoin bill has refined key elements, including ethics, consumer and bankruptcy protection.
- Senator Gillibrand clarified that the bill sidesteps US President Trump’s ethics issues, focusing on regulating the entire stablecoin space.
- Meanwhile, Brazil’s central bank has proposed stringent stablecoin rules as part of the new crypto regulatory framework.
The US Senate is gearing up for a monumental vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act by Memorial Day. During a panel discussion on Wednesday with Coinbase CEO Brian Armstrong, Senators Kirsten Gillibrand and Cynthia Lummis expressed strong optimism in the bill’s progress, highlighting key refinements that directly address ethics, consumer protection, and bankruptcy rights.
US stablecoin bill vote likely by Memorial Day
The GENIUS Act was introduced on February 4 by Senator Bill Hagerty, aiming to establish a federal regulatory framework for stablecoins. It requires a 1:1 backing using high-standard assets such as the US Dollar (USD) and Treasury bills. In March, the Senate Banking Committee advanced the bill with an 18-6 bipartisan vote.
However, its progress to an entire Senate vote has faced significant bottlenecks over the last few weeks, with a procedural vote on May 8 failing to pass with a 49-48 tally. For a bill to pass the procedural vote, it must garner at least 60 votes, subsequently ending debate.
Nine Democrat Senators withdrew support for the stablecoin bill, including Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Andy Kim, Kirsten Gillibrand, Angela Alsobrooks, Jack Reed and Elizabeth Warren, citing weak anti-money laundering (AML) provisions.
The Senators also called for the regulation of foreign issuers of stablecoins, strong federal security guidelines, as well as consumer protection to prevent the misuse of the asset class.
Senator Gillibrand said in the panel discussion moderated by Semafor’s Eleanor Mueller that she expected the revised stablecoin bill to pass the Senate vote by the end of next week.
Moreover, the bill will proceed for the vote without language targeting US President Donald Trump’s family’s crypto profits. Democrat legislators threatened to shoot down the bill last week, requesting that language be refined to deter President Trump from profiting off affiliated stablecoins or meme coins.
“When this language comes out, you will see really good refinements, a lot of progress — on things like consumer protection, and bankruptcy protection, and ethics,” Senator Gillibrand said.
The lawmaker added that the bill does not address “President Trump’s ethics problems,” because “a lot of what the President engaged in is already illegal.”
Coinbase CEO Brian Armstrong urged that the bill remain focused on stablecoins. Armstrong added that Coinbase initially wished to have the bill move in tandem with the broader crypto regulation framework. However, he fully supports the Senators' decision to advance the GENIUS Act first.
Senator Lummis was optimistic that Memorial Day is “a fair target” for the Senate to vote on the bill.
Brazil mulls stringent stablecoin regulations
The Central Bank of Brazil is considering stricter stablecoin rules as part of the country’s new cryptocurrency regulatory framework. According to The Defiant, the proposed guidelines comprise “restrictions on sending stablecoins to wallets controlled by non-Brazilian entities.”
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
