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US Senate moves forward with GENIUS stablecoin bill

The US Senate has voted to advance a key stablecoin-regulating bill after Democrat Senators blocked an attempt to move the bill forward earlier in May over concerns about President Donald Trump’s sprawling crypto empire.

A key procedural vote on the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act, passed in a 66-32 vote on May 20.

Several Democrats changed their votes to pass the motion to invoke cloture, which will now set the bill up for debate on the Senate floor.

Republican Senator Cynthia Lummis, one of the bill’s key backers, said on May 15 that she thinks it’s a “fair target” to have the GENIUS Act passed by May 26 — Memorial Day in the US.

Government, United States, Stablecoin
The US Senate voted 66-32 to advance debate on the GENIUS stablecoin bill. Source: US Senate

The GENIUS Act was introduced on Feb. 4 by US Senator Bill Hagerty and seeks to regulate the nearly $250 billion stablecoin market — currently dominated by Tether (USDT) and Circle’s USDC (USDC).

The bill requires stablecoins be fully backed, have regular security audits and approval from federal or state regulators. Only licensed entities can issue stablecoins, while algorithmic stablecoins are restricted.

Several Democratic senators withdrew support for the bill on May 8, blocking a motion to move it forward, citing concerns over potential conflicts of interest involving Trump’s crypto ventures and anti-money laundering provisions.

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The bill was revised soon after to receive enough bipartisan support to proceed to a vote.

Hagerty’s stablecoin bill builds on the discussion draft he submitted for former Representative Patrick McHenry’s Clarity for Payment Stablecoins Act in October.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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What’s behind Starmer’s reset?

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What's behind Starmer's reset?

👉Listen to Politics At Sam And Anne’s on your podcast app👈       

As MPs return to Westminster for a packed autumn term, will the prime minister be back with a bang?

Sky News’ Sam Coates and Politico’s Anne McElvoy discuss Keir Starmer’s priorities as the so-called “reset week” begins.

There’s chatter around No 10 of a staffing restructure but could this impact the government’s message and delivery of its missions?

Back in the Commons, the home secretary will lay out the government’s plans to restrict family members from joining asylum seekers.

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What to expect with US crypto policy as Congress comes back in session

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What to expect with US crypto policy as Congress comes back in session

What to expect with US crypto policy as Congress comes back in session

According to some Republican lawmakers, the first crypto-related priority in the Senate will be to pass legislation for market structure.

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Sir Keir Starmer’s ‘Mr Fixit’ is likely to be a recipe for conflict

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Sir Keir Starmer's 'Mr Fixit' is likely to be a recipe for conflict

After a torrid time before the summer break, Sir Keir Starmer has reshuffled his inner circle again on the first day back. 

This has become something of a habit.

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Although none of the Number 10 team are household names or public figures, the tally of those cycling through the top jobs is worth noting.

As of now, he’s had four chiefs of staff – the incumbent returning to the job, two cabinet secretaries with a third rumoured to be on the way and five directors of communications – a job that routinely fails to last a year these days.

The lesson this tells us is that when there’s blame to go around, Sir Keir is happy to apportion it to his closest aides.

In an interview today, the prime minister was clear that these changes are about moving to a new phase of government, more focused on delivery.

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A delivery phase implies legislation completed and a focus on implementation. Bluntly, this is not the case or an accurate assessment of the job that now needs to be done.

The autumn term is not about implementation.

It’s about filling the £20bn to £40bn black hole we expect to emerge in the autumn budget, as well as continuing to deal with an uncertain world globally, and deciding on massively tricky domestic issues like reform of special educational needs and whether to revisit welfare reform.

We are still at the “big choices” section of this parliament, not the delivery phase.

The big choice in Sir Keir’s reset on Monday has been to bring in his own Mr Fixit into Downing Street.

He chose a mid-level cabinet minister, Darren Jones – until today the number two in the Treasury – and has parachuted him into his office to oversee policy.

This is an appointment, I’m told, that was pushed and encouraged by Rachel Reeves because of Mr Jones’ role in the spending review.

As chief secretary, Mr Jones is meant to have gone item by item through every department’s budget. He knows where the financial bodies are buried and will be a major alternate source of advice for Sir Keir to individual cabinet ministers.

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This is undoubtedly a recipe for conflict. There are already some around the cabinet table who found Mr Jones’ style a touch brusque. His fans say this is part of why he is effective: he is prepared to challenge what he’s told, is an independent thinker and unafraid to challenge big beasts.

He will now play this role permanently, on behalf of the prime minister, and structurally, this means he is bound to be disliked by several of these colleagues who will no doubt, in time, seek to undermine him, just as he will challenge them and have the last word with Sir Keir.

No matter that some might be surprised at the choice, as a fiscal and reforming hawk, since few would put him on the same ideological wing of the party as the prime minister. He is also a late joiner to the Starmer project, although joining in opposition spent years longer than some as chair of the business select committee rather than taking more junior roles.

This is now immaterial. He is responsible for making Sir Keir’s government work in practice. His colleagues could do worse than to sincerely wish him good luck and leave him to it, as there is a great deal to be done.

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