The U.S. Stablecoin Bill “GENIUS Act” Advances to Formal Vote on May 19, with Musk Also Named for Regulation

05/16/2025

US Stablecoin Bill “GENIUS Act” to End Discussions on 5/19, Entering Formal Voting Stage

The “GENIUS Act” is set to conclude discussions on May 19 and move into the formal voting phase. Currently, both the House and Senate have their respective versions of the bill, which will be pushed forward in tandem with the already passed “STABLE Act.” Notably, even Tesla founder Elon Musk has been specifically mentioned in the bill.

“GENIUS Act” Finally Enters the “Substantive Vote” Stage

According to a recent tweet by foreign media reporter Eleanor Terrett this morning (May 16), Senate Majority Leader John Thune has officially proposed a motion to end debate on the stablecoin bill “GENIUS Act” on May 19, representing the bill’s preparation for formal voting procedures. This indicates a bipartisan consensus in Congress regarding stablecoin regulation, ready to expedite its implementation.

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Key Compromises: Focus Not Only on Crypto but Also on Musk and Consumer Protection

During the advancement of the bill, the Senate is currently reviewing a bipartisan negotiated amendment:

Inclusion of Tech Companies in Regulation: Particularly tech giants entering the payment, stablecoin, or digital asset sectors. For instance, Elon Musk’s Twitter (X) has recently been actively promoting payment features, which may involve stablecoin or cryptocurrency transactions in the future. “Some legislators worry that these platforms could become unregulated money flow channels, and therefore demand that such companies also be subjected to financial regulation.”
Enhanced Consumer Protection: Strengthening regulations to address issues like misleading usage by the Federal Deposit Insurance Corporation (FDIC) and unclear bankruptcy protections.
Strengthening Regulatory Transparency and Accountability Mechanisms: Preventing asset misappropriation or unregulated stablecoin operations.

The contents of the above bill are expected to attract more support from both Democratic and Republican lawmakers.

Key Aspects of the Bill: Stablecoin Issuers Must Comply, Be Transparent, and Have Asset Backing

The “GENIUS Act,” proposed by Republican Senator Bill Hagerty, has the following key points:

Stablecoins must be pegged to the US dollar or government bonds as asset backing.
Issuers with assets exceeding $10 billion will be regulated by the Federal Reserve (SEC), while smaller ones will be regulated by individual states.
Regulations on licensing qualifications, asset audits, and information disclosure obligations for issuing institutions.
Emphasis on financial inclusivity and the solidification of the international status of the US dollar.

House Version “STABLE Act” Has Passed

In addition to the Senate version, the House had previously passed its own version of the “STABLE Act.” This bill similarly regulates all stablecoins pegged to the US dollar, including the most common ones in the market, USDT and USDC. The “STABLE Act” focuses on:

Full disclosure of asset reserves to prevent false promises.
Strengthening regulation to ensure consumer fund safety.
Assisting the US in maintaining its global leadership in financial technology.

Supporters, such as Republican Congressman Dan Meuser, believe this is an important step to help the market lay a solid “foundation.”

Future Observations:

Will the “GENIUS Act” successfully pass the Cloture Vote on May 19?
If there are differences between the House and Senate versions, how will they be coordinated and integrated?
Will stablecoin issuers like Tether and Circle change their operational strategies once the new law is enacted?
If Musk’s social platform X develops payment and cryptocurrency services, will it be formally subject to financial regulatory oversight?

(60 executives from the crypto space rush to Washington! All-out effort to rescue the stablecoin bill “GENIUS Act,” Coinbase CEO: Absolutely will not give up)

Risk Warning

Investing in cryptocurrencies carries a high level of risk, and their prices can be extremely volatile, leading to a potential loss of your entire principal. Please assess the risks carefully.