The Senate on Tuesday passed legislation creating a regulatory framework for payment stablecoins in a major milestone for the crypto industry.
Lawmakers voted 68-30 to pass the GENIUS Act, which seeks to establish rules of the road for the dollar-backed cryptocurrencies. It marks the first time that major crypto legislation has cleared the upper chamber. The bill now heads to the House.
“With the GENIUS Act, we’re bringing clarity to a sector that’s been clouded by uncertainty and proving that bipartisan, principled leadership can still deliver real results for the American people,” Senate Banking Chair Tim Scott (R-S.C.) said in a statement.
“This did not happen by accident,” he continued. “It happened because we led – across the aisle and with purpose.”
Eighteen Democrats joined with most Republicans to pass the legislation, which has trudged forward through a series of procedural hurdles on the Senate floor over the past four weeks.
Sen. Ruben Gallego (D-Ariz.), who was a lead negotiator for Democrats on the GENIUS Act, touted its passage as “proof of what can be achieved through honest negations and a willingness to work across the aisle.”
The stablecoin bill appeared to be sailing forward this spring after passing out of the Senate Banking Committee with the support of five Democrats.
However, the legislation briefly hit a roadblock in early May, when Senate leadership moved to bring the bill to the floor. A contingent of crypto-friendly Democrats pulled their support, alleging Republicans had cut off negotiations prematurely and tanking an initial vote on the Senate floor.
After two weeks of frantic negotiations, the two sides reached a deal on new bill text.
“With the GENIUS Act’s passage, we are meaningfully closer to a stablecoin regulatory landscape in the U.S. that provides clear rules of the road, protects consumers, and holds bad actors accountable,” Gallego said in a statement.
“I look forward to seeing this bill pass the House with equally strong bipartisan support and get signed into law,” he added.
