US Senators put together for a brand new vote on the extremely anticipated stablecoin invoice that just lately didn’t move cloture. After going through backlash and help withdrawal from Senate Democrats, the invoice has undergone new bipartisan amendments to advance the laws within the upcoming weeks.
Stablecoin Invoice To Face Second Cloture Movement
Every week after failing to move the US Senate vote, Senator John Thune has filed cloture on the amended Guiding and Establishing Nationwide Innovation for US Stablecoins (GENIUS) Act following bipartisan efforts to revive the laws.
Senator recordsdata for second cloture movement on the GENIUS Act. Supply: Congress.gov
The invoice, sponsored by Republican Senator Invoice Hagerty, didn’t move the cloture movement on Could 8 after a number of lawmakers, together with two Republican senators, withdrew their help forward of the vote.
Notably, the stablecoin laws solely obtained 49 favorable votes when the method requires 60 senators to conform to advance the laws to an open flooring debate. Earlier than final week’s failure, the GENIUS Act was thought-about a bipartisan effort to supply regulatory readability, with varied Senate Democrats supporting the invoice.
The invoice underwent varied amendments to handle Democratic senators’ considerations, together with stricter necessities for stablecoin issuers and Anti-Cash Laundering (AML) provisions. Nonetheless, in an opposition assertion, ten senators, together with 4 Democrats who beforehand supported the invoice, criticized the revised model of the laws.
The lawmakers urged that the draft omitted important AML and nationwide safety safeguards and had ambiguous laws that might expose crypto markets to exploitation, which led to its failure.
Now, journalist and podcast host Eleanor Terret reviews that Senator Thune filed for a second cloture movement on Could 15, with a vote scheduled for Monday night after varied amendments to handle the Democrats’ considerations.
Bipartisan Amendments May Not Be Sufficient
As reported by Bitcoinist, the US senators from each events had been working to “shortly revive” the stablecoin laws because the Could 8 failure.
The invoice’s sponsor, Senator Hagerty, just lately advised Bloomberg that workers from the 2 events had continued to work on the GENIUS Act, hoping that Senate Democrats would conform to move the invoice earlier than the Memorial Day vacation, on Could 26.
The latest bipartisan amended model of the stablecoin laws reportedly consists of new language concerning shopper safety, ethics, limitations on Huge Tech issuers, amongst different provisions.
In keeping with a draft web page shared by Terret, the invoice now prohibits non-financial publicly traded corporations, like Meta, Amazon, Google, and Microsoft, from issuing a stablecoin except they meet strict standards associated to monetary dangers, shopper information, and honest enterprise practices, to keep up “the separation between banking and commerce.”
New bipartisan amendments to the GENIUS Act. Supply: Eleanor Terret on X
Moreover, it establishes that issuers can’t use US-related branding, prohibiting phrases like “United States,” “United States Authorities,” or “USG” within the stablecoin’s identify to forestall shoppers’ confusion with a US-backed token. This straight responds to Senator Elizabeth Warren’s considerations about potential “crypto corruption.”
The invoice expanded the Ethics Protection for Particular Authorities Workers, including that common and particular authorities staff, together with Elon Musk and the White Home’s AI & Crypto Czar, David Sacks, are uniformly topic to conflicts of curiosity procedures.
In the meantime, the bipartisan amendments additionally strengthen the Treasury Division’s enforcement capabilities, securing the company’s “capability to droop an issuer’s registration after each reckless and willful violations.”
Regardless of the modifications, a latest memo from Democratic workers on the Senate Banking Committee means that the amendments are inadequate for the invoice to move the vote subsequent week, as “most of the new modifications are fig leaves for vital flaws that jeopardize shopper safety and nationwide safety.”
The Democrats’ Thursday evaluation affirms that the “present draft paves the way in which for extra Trump crypto corruption,” increasing a “large nationwide safety loophole for Tether,” and nonetheless allowing Huge Tech corporations to situation a stablecoin whereas failing to handle a number of different “basic flaws.”
Bitcoin (BTC) trades at $103,695 within the one-week chart. Supply: BTCUSDT on TradingView
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