- Senate pushes Stable Act forward after key Democrats change stance following bill revisions.
- Industry pressure helped revive the Stable Act which sets rules for stablecoin use in the United States.
- The Stable Act will now face a full Senate vote before moving to the House for final approval.
The Senate’s GENIUS Act cleared a crucial procedural hurdle Monday night, putting it back on track for swift passage. Just days ago, the same bill failed to secure enough votes to move forward. It faced opposition from key Democrats over unresolved ethics issues tied to stablecoin oversight.
The shift came after Democratic lawmakers negotiated a revised draft. This version includes new clauses addressing national security, conflict of interest, and Big Tech regulation.
Revised Draft Wins Back Democrats
Five Democratic senators who previously opposed the measure reversed course and supported it Monday evening. The new version bars senior executive officials from launching personal stablecoins. However, it still permits the president and vice president to do so.
The revision also targets Big Tech firms. It prohibits them from issuing stablecoins if they misuse financial data without clear user consent. These changes helped restore confidence among skeptical lawmakers.
Industry Lobbying Intensifies
The crypto industry heavily lobbied for the bill to be reconsidered. Coinbase, an important company in the field, increased its involvement in politics this past weekend. The company cautioned lawmakers that blocking the bill could have negative outcomes. Its affiliated watchdog group threatened to lower political ratings of unsupportive senators.
Coinbase also urged users to contact their representatives directly. An in-app message asked American users to support the GENIUS Act, adding public pressure on Congress.
Wall Street Awaits Regulatory Clarity
Once passed, the GENIUS Act will give regulatory guidance for managing stablecoins in the U.S. The clear rules may lead to large investments by traditional financial organizations.
Stablecoins, usually tied to the U.S. dollar, are essential tools in crypto trading and cross-border payments. Wall Street firms have shown growing interest in entering the market. Analysts predict billions of dollars could flow into the space once legal uncertainty is resolved. The GENIUS Act may open the door for that influx.
Next Steps in the House
Following Monday’s procedural win, the bill now heads for a full Senate vote, expected within days. If it passes, the legislation will move to the House of Representatives.
The House would need to approve the bill before it reaches the president’s desk. Lawmakers expect similar support in that chamber. With bipartisan backing and mounting industry pressure, the GENIUS Act appears poised to become law soon.
