The Senators’ Last-Ditch Effort to Revive a Floundering Stablecoin Bill: Will It Work?

by

It’s almost as if they can’t quit it. A mere week after the great, glorious failure of the stablecoin bill in the US Senate, a fresh attempt is being made to revive it, against all odds, through a decidedly bipartisan push. Oh, the drama!

Will The Stablecoin Bill Be Reborn From the Dead?

On Tuesday, Bloomberg broke the news: US Senators are apparently determined to “quickly revive” the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This bill, which tragically stalled in the Senate last week after failing to gain enough support from Senate Democrats, is now receiving a second chance. Will this time be different? Stay tuned.

The GENIUS Act, introduced by Republican Senator Bill Hagerty, seeks to create a framework for stablecoins that would have them fall under the Federal Reserve’s watchful eye. Their mission? To establish a “safe and pro-growth” regulatory environment. How sweet. How very American.

Sponsored by a cast of political characters, including Senators Tim Scott, Cynthia Lummis, Kirsten Gillibrand, and Angela Alsobrooks, the bill was tragically defeated in the cloture vote last week. Only 49 senators voted in favor, far from the 60 needed to end the debate. As fate would have it, two Republican senators—Josh Hawley and Rand Paul—joined the Democrats in voting against it. What a plot twist!

Senator Hagerty, ever the optimist, told Bloomberg that both parties are still working together on this bill, in the hopes that Senate Democrats will finally give it the green light before the Memorial Day recess, which conveniently falls on May 26. After that, the Senate’s focus will shift to the Republican Party’s infamous tax and spending package. What a show of priorities.

“The window is now,” Hagerty declared, ever the dramatist, “We will see if reasonableness will prevail.” Spoiler alert: it probably won’t, but one can always hope.

Will GENIUS Find its Bipartisan Soulmate?

There’s something beautiful in the idea of bipartisan support—though, in the case of the GENIUS Act, that beauty is somewhat tarnished. Initially, this bill was hailed as a joint effort to increase regulatory clarity, with multiple Democrats, including Senator Alsobrooks, showing enthusiasm. But alas, as all good things go, cracks appeared.

As the bill moved forward, various amendments were introduced to appease those pesky Democrats, such as tighter requirements for stablecoin issuers and Anti-Money Laundering (AML) provisions. How touching. However, as we know, nothing is ever quite as simple as it seems.

Before the fateful May 8 vote, some Senate Democrats raised concerns over the revisions, claiming that the bill was lacking essential safeguards. Among them, crypto-skeptic Senator Elizabeth Warren voiced her concern about President Donald Trump’s alleged crypto connections. Her argument? The bill might open the door to “crypto corruption.” Oh, the horror!

Meanwhile, Senator Alsobrooks, the bill’s Democratic champion, continued her work on trying to push the bill through, even as doubts lingered. The fate of the bill, of course, now rests on whether the Democrats can be convinced to give it another go. Will they or won’t they? We wait with bated breath.

Coinbase’s CEO, Brian Armstrong, weighed in with his thoughts. He pointed to a recent statement by Josh Vlasto, spokesperson for Cedar Innovation Fund, which is tied to the Fairshake Super Political Action Committee (PAC). Vlasto’s message was clear: both parties need to work together. “Senate leadership on both sides of the aisle should avoid political games and pass a final stablecoin bill in the coming days,” he said. Could this be the moment of truth? Or is it just another political game?

“The crypto community needs clear, responsible rules of the road in the United States, and further delays put American competitiveness and consumers at risk.” A stirring plea, but will it sway the Senate? Only time will tell.

Read More

2025-05-15 10:49