The U.S. Senate is working to advance the GENIUS Act, a landmark stablecoin bill, by removing controversial provisions related to former President Trump’s cryptocurrency activities. This move aims to refocus the legislation on establishing a clear regulatory framework for stablecoins.
Bipartisan Push: Senate Nears Stablecoin Deal After Dropping Trump Clauses
US agencies are aiming to make crypto regulations. The Senate is advancing the bipartisan GENIUS Act, a stablecoin bill, but with language relating to Trump’s crypto interests removed.
Key Developments
- Senators Cynthia Lummis from Wyoming and Kirsten Gillibrand from New York are hoping to pass the bill by May 26th for Memorial Day recess.
- The new bill does not mention Trump’s memecoin, stablecoin and mining, but rather aims for consumer protections and bankruptcies, as per the news website.
- Coinbase CEO Brian Armstrong is hopeful for a Senate vote in the early days of next week.
Why the Changes?
Gillibrand explained the bill was never “an ethics bill” aimed at Trump.
“It’s a very long bill and comprehensive, because it is dealing with all the president’s Trump ethics problems.”
Instead, the focus is on:
- Regulating stablecoin issuers
- Enhancing consumer protections
- Preventing financial instability
Political Roadblocks
- The Democrats delayed the bill on May 8 because of Trump’s interference with cryptocurrency.
- The original version, Elizabeth Warren (D-MA) argued, “supercharged Trump’s corruption” and lacked safeguards.
- Amended phrase has sparked renewed bipartisan negotiations, but some Dems still want better anti-money laundering (AML) rules.
Why Timing Matters
Crypto firms are scrambling in advance of the 2026 midterm elections over the prospect of a hostile shift in regulation.
- Marta Belcher of the Blockchain Association said that it may be our last chance for meaningful crypto laws.
- Chris Jonas (BA) believes that if Congress does not take its summer break in August, the momentum would die.
What’s Next?
- Senate vote anticipated by 26 May
- House needs to reconcile in order to pass it finally
- Trump may sign before August; it’s ongoing negotiations
Conclusion
Senate Has Revived Hope for Stablecoin Regulation by Dropping a Divisive Trump Provision, The time is running out for a bill that could clarify crypto markets.
