US Senate likely to vote on the stablecoin GENIUS Act by Memorial Day as Brazil considers stringent regulations

• US Senators Kirsten Gillibrand and Cynthia Lummis are optimistic that the Senate will vote on the revised stablecoin bill by Memorial Day.
• The revised stablecoin bill has refined key elements, including ethics, consumer and bankruptcy protection.
• Senator Gillibrand clarified that the bill sidesteps US President Trump’s ethics issues, focusing on regulating the entire stablecoin space.
• Meanwhile, Brazil’s central bank has proposed stringent stablecoin rules as part of the new crypto regulatory framework.

The US Senate is gearing up for a monumental vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act by Memorial Day. During a panel discussion on Wednesday with Coinbase CEO Brian Armstrong, Senators Kirsten Gillibrand and Cynthia Lummis expressed strong optimism in the bill’s progress, highlighting key refinements that directly address ethics, consumer protection, and bankruptcy rights.

US stablecoin bill vote likely by Memorial Day

The GENIUS Act was introduced on February 4 by Senator Bill Hagerty, aiming to establish a federal regulatory framework for stablecoins. It requires a 1:1 backing using high-standard assets such as the US Dollar (USD) and Treasury bills. In March, the Senate Banking Committee advanced the bill with an 18-6 bipartisan vote.

However, its progress to an entire Senate vote has faced significant bottlenecks over the last few weeks, with a procedural vote on May 8 failing to pass with a 49-48 tally. For a bill to pass the procedural vote, it must garner at least 60 votes, subsequently ending debate. 

Nine Democrat Senators withdrew support for the stablecoin bill, including Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Andy Kim, Kirsten Gillibrand, Angela Alsobrooks, Jack Reed and Elizabeth Warren, citing weak anti-money laundering (AML) provisions. 

The Senators also called for the regulation of foreign issuers of stablecoins, strong federal security guidelines, as well as consumer protection to prevent the misuse of the asset class.

Senator Gillibrand said in the panel discussion moderated by Semafor’s Eleanor Mueller that she expected the revised stablecoin bill to pass the Senate vote by the end of next week.

Moreover, the bill will proceed for the vote without language targeting US President Donald Trump’s family’s crypto profits. Democrat legislators threatened to shoot down the bill last week, requesting that language be refined to deter President Trump from profiting off affiliated stablecoins or meme coins.

“When this language comes out, you will see really good refinements, a lot of progress — on things like consumer protection, and bankruptcy protection, and ethics,” Senator Gillibrand said.

The lawmaker added that the bill does not address “President Trump’s ethics problems,” because “a lot of what the President engaged in is already illegal.”

Coinbase CEO Brian Armstrong urged that the bill remain focused on stablecoins. Armstrong added that Coinbase initially wished to have the bill move in tandem with the broader crypto regulation framework. However, he fully supports the Senators' decision to advance the GENIUS Act first.

Senator Lummis was optimistic that Memorial Day is “a fair target” for the Senate to vote on the bill.

Brazil mulls stringent stablecoin regulations

The Central Bank of Brazil is considering stricter stablecoin rules as part of the country’s new cryptocurrency regulatory framework. According to The Defiant, the proposed guidelines comprise “restrictions on sending stablecoins to wallets controlled by non-Brazilian entities.”