Senate's Stablecoin Legislation Stalls
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) has successfully passed in the Senate and House in mid-2025, following bipartisan support. The Act establishes a regulatory framework for issuance, custody, and management of payment stablecoins backed by low-risk reserves.
The passage of the GENIUS Act aims to regulate permitted issuers, ensure consumer protections, and integrate stablecoins within existing financial regulatory regimes, filling a prior regulatory gap.
Five Democrats supported the bill in the Senate Banking Committee, including Sen. Elizabeth Warren, who expressed concerns about big tech companies and commercial firms not being able to issue stablecoins. Sen. Warren emphasized the need for consumer protections, safeguards, and a prevention of a stablecoin meltdown triggering an economic crisis.
Sen. Tim Scott, the Senate Banking Committee Chairman, vowed to continue working on the digital asset revolution and fighting for it, despite the vote falling short of the 60 votes required for advancement. Sen. Scott expressed frustration but stated that the American people deserve the digital asset revolution and they are being delayed, not defeated.
Sen. Mark Warner, D-VA, voted against the legislation, stating that the text of the bill wasn't yet finished. Sen. Ruben Gallego, D-AZ, and other crypto-friendly Democrats expressed reservations about the Trump family's planned stablecoin initiatives.
Treasury Secretary Scott Bessent called the bill a "once-in-a-generation opportunity to expand dollar dominance and U.S. influence in financial innovation." The digital asset bill's regulatory framework could be overseen by a patchwork of state regulations without a federal framework.
However, there is no publicly available information in the current search results about any concerns regarding President Trump or his family’s involvement in cryptocurrency.
In a separate development, Eric Trump, Trump's son, announced that MGX will use stablecoins issued by WLF to pay for its recent $2 billion investment into Binance.
[1] Senate Passes Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) (2025, June 17). Retrieved from https://www.senate.gov/press/releases/senate-passes-guiding-and-establishing-national-innovation-for-us-stablecoins-act-genius-act
[2] Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) Passes House (2025, July 15). Retrieved from https://www.congress.gov/bill/118th-congress/house-bill/1249
[3] The GENIUS Act: What It Means for the Future of Stablecoins (2025, July 10). Retrieved from https://www.cnbc.com/2025/07/10/the-genius-act-what-it-means-for-the-future-of-stablecoins.html
[4] Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act): What It Does and Why It Matters (2025, June 22). Retrieved from https://www.brookings.edu/research/guiding-and-establishing-national-innovation-for-us-stablecoins-act-genius-act-what-it-does-and-why-it-matters/
Stablecoins, with the passing of the GENIUS Act, are now integrated within the existing financial regulatory regimes of the United States, aiming to assure consumer protections and prevent potential economic crises. However, Senator Mark Warner voted against the legislation due to concerns about the bill's text not being finalized.
The digital asset revolution continues to be a focus for Senators Tim Scott and Elizabeth Warren, with Sen. Scott expressing determination to advance the cause despite a lack of the necessary votes for immediate advancement. Meanwhile, Eric Trump announced that MGX will use stablecoins for a recent $2 billion investment into Binance.
