The U.S. Senate has advanced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bipartisan bill aimed at regulating stablecoins—cryptocurrencies pegged to assets like the U.S. dollar or gold. On May 20, 2025, the Senate cleared a key procedural vote with a 66-32 margin, moving the legislation closer to final passage.

The GENIUS Act introduces enhanced oversight for foreign stablecoin issuers and prohibits major technology companies, such as Meta and Google, from issuing their own stablecoins. This legislative effort underscores the growing influence of the cryptocurrency industry and aligns with President Donald Trump's priorities.

However, the bill has faced opposition from some Senate Democrats, who express concerns about potential financial benefits to President Trump, given his recent launch of a meme coin and his family's venture, World Liberty Financial, which introduced its own stablecoin, USD1. Critics, including Senator Elizabeth Warren, argue that the legislation lacks sufficient ethical safeguards and could exacerbate presidential conflicts of interest.

Despite these concerns, proponents like Senator Mark Warner emphasize the necessity of establishing a federal regulatory framework to ensure consumer protection, national security, and industry stability, especially as the stablecoin market approaches $250 billion. The Senate is expected to vote on the final passage of the bill later this week.

World Liberty Financial (WLFI), founded in 2024, is a decentralized finance company closely associated with President Donald Trump and his family. In March 2025, WLFI launched USD1, a stablecoin pegged to the U.S. dollar and backed by U.S. Treasuries and cash equivalents.

President Trump has been actively involved in the cryptocurrency space, including the launch of the USD1 stablecoin through WLFI.

Senator Elizabeth Warren has expressed concerns about potential conflicts of interest, stating, "This is corruption and no senator should support it."

The GENIUS Act aims to establish a federal regulatory framework to ensure consumer protection, national security, and industry stability, especially as the stablecoin market approaches $250 billion.

Critics argue that the legislation lacks sufficient ethical safeguards and could exacerbate presidential conflicts of interest, given President Trump's involvement in cryptocurrency ventures.

While there have been prior attempts to regulate cryptocurrencies, the GENIUS Act represents a significant bipartisan effort to establish comprehensive oversight of stablecoins.

The intertwining of presidential business interests with policy initiatives has been a contentious issue, with the current situation drawing parallels to past concerns about conflicts of interest.

The advancement of the GENIUS Act marks a pivotal moment in the regulation of stablecoins, reflecting the growing influence of the cryptocurrency industry and raising important questions about ethics, consumer protection, and the role of technology companies in the financial sector.