Senator Bill Hagerty, one of the sponsors of the GENIUS stablecoin act, remains upbeat that the bill will pass Senate approval next week.
On Friday, he released a statement with co-sponsor Kirsten Gillibrand, expressing optimism that the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, up for debate and deliberation on May 19, will gain bipartisan support.
Senator Hagerty announced that the Senate is set to make history in the coming week by debating and approving the GENIUS Act, which aims to create the first regulatory framework focused on supporting growth for payment stablecoins.
History on Course Amid Draft Amendment
On May 8, the GENIUS Act faced a major hurdle in Congress, failing to meet the 60 votes required for cloture. 49 votes stood against progressing the proposal for final passage, with 48 favoring the course.
Some notable loopholes Democrats identified that caused their change of disposition toward the bill include the current text’s unclear provisions on anti-money laundering, foreign stablecoin issuance, and customer protection.
Meanwhile, bipartisan efforts to amend the GENIUS Act texts are ongoing, FOX Business journalist Eleanor Terret confirmed Thursday. The new draft making the rounds includes alterations on customer protection, bankruptcy, and ethics.
🚨SCOOP: Text on a potential bipartisan amendment to the GENIUS Act has been circulated around the Senate. I’m told it includes new changes on consumer protection, bankruptcy and ethics, according to two Senate sources familiar with the matter.
— Eleanor Terrett (@EleanorTerrett) May 15, 2025
For context, the amendments prevent Big Tech firms like Meta or Google and special government employees like Elon Musk from venturing into stablecoin issuance. Furthermore, there are speculations about an amendment giving stablecoin holders exceptional treatment in the case of bankruptcy filings.
With the bipartisan efforts ongoing, Senator Hagerty has expressed optimism that the GENIUS Act will advance next week. He again sold the bill in the post, noting that stablecoin legislation would increase the US dollar’s dominance and demand for US Treasuries while ensuring that digital asset innovations thrive in the United States.
Notably, the GENIUS Act needs 60 votes to advance next week. The majority approval would set the precedent for passing into law subsequently.
The Expanding Stablecoin Sector
Stablecoins offer stability for potential investors with a 1:1 peg to fiat currencies. Currently, the sector has a market cap of $246 billion, with major issuers like Tether and Circle dominating proceedings. Tether’s USDT has a cap at $151 billion, and Circle’s USDC has a valuation of $61 billion.
Meanwhile, stablecoin utility is rising, with major institutions and governments teeing up large-scale adoption. Mastercard recently partnered with MoonPay to simplify stablecoin payments for over 150 million merchants globally.
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