The U.S. Senate’s “GENIUS Act” stablecoin legislation is poised to receive broad bipartisan support, with as many as 16 Democrats expected to vote in favor, according to Arizona Senator Ruben Gallego.
Key Developments:
- The “Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 (GENIUS) Act” is expected to clear a critical Senate vote next week.
- Sen. Gallego says Republicans adopted most of the amendments Democrats demanded, improving consumer protection and regulatory clarity.
- Gallego and other Democrats initially blocked the cloture vote last month but reversed course after key negotiations.
- Market structure legislation is also required for the stablecoin bill to have full impact, according to both Gallego and House Financial Services Chair Rep. French Hill.
“It’s a Significantly Different Bill Now”
Speaking at the Blockchain Association’s “Crypto Clarity in America” summit, Sen. Gallego emphasized that the current version of the GENIUS Act reflects weeks of cross-party negotiations, stating:
“They adopted a lot of the amendments… It’s a significantly different bill.”
He criticized the earlier Republican attempt to rush a vote, describing it as a “power play,” but praised the final bipartisan process, calling it “honest and earnest.”
Market Structure Bill Also in Focus
While the GENIUS Act appears ready to move forward, lawmakers including Gallego, Hill, and Rep. Bryan Steil stressed the need to pass companion market structure legislation to fully establish a regulatory framework for digital assets.
“If we don’t pass both bills, we’re potentially at the whim of regulators acting without clear authority,” said Rep. Hill.
Hill warned that traditional finance firms won’t fully engage with crypto without legal clarity, affecting custody, brokerage, and payment infrastructure.
August or Early 2026: Timeline Unclear
Gallego noted an August deadline is “optimistic,” and that early 2026 may be a more realistic target before U.S. election season intensifies.
“We all become like animals during the election cycle,” he quipped, urging lawmakers to avoid rushing flawed legislation.
Next Steps
- The House Financial Services Committee will mark up its own market structure bill next Tuesday.
- Lawmakers will need to reconcile House and Senate versions of both bills before sending them to President Donald Trump.
- Bipartisan cooperation remains the key to getting both landmark bills passed this session.