The Senate's 68-30 vote limits debate time for the stablecoin bill, paving the way for passage next weekend.
The United States Senate took an important step in the stablecoin legislative process yesterday when 68 votes in favor and 30 against approved the procedural step for the GENIUS Bill. This procedural vote limits further debate time and suggests the current version is likely the final version of the bill, marking a high probability of passage next weekend.
The voting results show significant bipartisan support, with 18 Democratic Senators voting in favor and only 2 Republican Senators opposing. Senate Banking Committee Chairman Tim Scott noted this as a victory for innovation, as this legal framework will help entrepreneurs confidently build within the United States instead of going abroad.
However, the effort to attach the Credit Card Competition Act, which was unrelated, led to shortened modification procedures and blocked some Democratic Party proposals related to former President Trump's cryptocurrency activities. This created tension within the Democratic Party, especially among those wanting stricter regulations.
Stablecoin as a National Strategy
Senator Bill Hagerty, the primary sponsor of the bill, emphasized that stablecoin is considered a strategic tool to boost U.S. Treasury bond demand. He mentioned a recent report predicting that with a suitable legal framework, stablecoin issuers could become the largest Treasury bond investors by the end of this decade, which would consolidate the national fiscal position and reinforce the USD's role as a global reserve currency.
However, some studies suggest the actual impact could be more complex. The International Payment Bank published data showing stablecoins have a certain influence on short-term T-bill interest rates, but lower than expected. The Financial Stability Council also warned that stablecoins could pose systemic risks if not strictly controlled.
Despite the bipartisan support, a segment of the Democratic Party led by Senator Elizabeth Warren strongly opposes the bill. She objected to the Democratic-proposed amendments not being put to a vote, including stricter regulations on public official conflicts of interest and restrictions on stablecoins issued by Big Tech. Warren also sent a letter to Meta questioning whether the company is secretly reviving plans to issue a stablecoin, which previously caused a fierce reaction with the 2019 Libra project.
