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TEXXR

Chronicles

The story behind the story

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The US Senate advances the GENIUS Act, a stablecoin bill, after a group of Democrats dropped their opposition on May 19, a major victory for the crypto industry

Stablecoin legislation overcame a procedural blockade in the US Senate, marking a major victory for the crypto industry …

Bloomberg Steven T. Dennis

Context & Ripple Effects

The bill had been on a bipartisan path in March before a May 9 Democratic blockade tied to concerns about officials profiting from crypto ventures. The May 19 reversal restored that path, turning a stalled negotiation into a procedural win for the industry.

This was the bridge between the earlier expectation of Senate support and the later Senate passage establishing a federal framework for dollar-pegged stablecoins. It also gave the measure momentum toward the House action that ultimately sent GENIUS to the president.

First-order effects

  • The Senate can move the GENIUS Act beyond its procedural blockade after enough Democrats withdrew opposition, giving crypto advocates a near-term legislative victory.
  • Democratic leverage shifts from stopping the bill outright to shaping its remaining legislative path, while Senate backers gain a clearer route to a final vote.

Second-order effects

  • Stablecoin issuers and other crypto companies gain a stronger basis to plan around the prospect of federal rules, rather than a bill stalled by partisan disagreement.
  • The revived Senate measure increases pressure on the House to engage with stablecoin policy and makes other crypto legislation more politically salient, as later House leaders bundled GENIUS into a broader Crypto Week agenda.

Third-order effects

  • If this cross-party legislative coalition holds, stablecoins could move from a regulatory legitimacy gap toward a federal-policy category with clearer political sponsorship.
  • The episode shows that crypto legislation may advance issue by issue, but conflicts over ethics and officials' crypto interests can remain a recurring constraint on durable bipartisan alignment.

The trend: Stablecoin policy is becoming the leading edge of crypto's push for federal legitimacy, with legislative progress depending on whether bipartisan coalitions can contain governance disputes.

Discussion

  • @leftwardswing @leftwardswing on bluesky
    16 Senate Democrats voted YES on the GENIUS Act, a giveaway to billionaires 🤬  —  16 Dem Senators sided with fascists.  —  And it's ALWAYS the same Democrats doing this.  Remember that so you can use it later when this happens again.  —  www.nbcnews.com/politics/con...  [image]
  • @chicagomike Mike on bluesky
    Really sucks to learn most of your elected officials just want to fleece America
  • @senatorhagerty Senator Bill Hagerty on x
    Tonight, the Senate moved forward on the GENIUS Act. This groundbreaking, bipartisan legislation will bring America's payment system into the 21st century. The GENIUS Act skyrockets the United States with a digital payment framework with the fastest rails possible. It will
  • @novogratz Mike Novogratz on x
    Proud of @MarkWarner and @RubenGallego and @SenatorHagerty who proved bi-partisan cooperation isn't impossible!! I have always been a believer that crypto should be bi-partisan and this feels like a great first step. These three weren't the only ones who worked on the genius
  • @mind0fjustin Justin on x
    @StevenTDennis @ryangrim Gillibrand representing the pro-corruption caucus
  • @james59492 Timmy James on x
    @SenatorHagerty Everybody is going to have to get a chip in their head or hands to purchase anything...I don't think that's good
  • @twobitidiot Ryan Selkis on x
    Omg. @SenWarren were you really the Chief Foe here? [image]
  • @davidsacks47 David Sacks on x
    Amazing job by @SenatorHagerty to win over 60 votes for cloture on the GENIUS Act. This legislation creates a legal framework for stablecoins — a big win for crypto. Now it moves to a full floor vote. Thank you also to @LeaderJohnThune @SenatorTimScott @SenLummis @SenGillibrand.
  • @robfrasca Rob Frasca on x
    @novogratz ... Bi-partisan teamwork in the crypto space is like finding a unicorn—rare but magical. Kudos to @MarkWarner, @RubenGallego, and @SenatorHagerty for showing the way forward. Let's keep this momentum going; the future is collaborative! 🦄🚀
  • @chuckgoat1 @chuckgoat1 on x
    @StevenTDennis Can someone tell Bitcoin Gillibrand that this New-Yorker will vote for whoever primaries her or even a republican crackpot if the bill goes through. This whole thing is a complete fraud and the only reason to vote for this bill is you've been bought and paid for.
  • @steventdennis Steven Dennis on x
    Some drama on the Senate floor. During stablecoin vote the top crypto-friendly Dem, Kirsten Gillibrand, and Elizabeth Warren, the chief foe, got in a heated argument on the Democratic side of the chamber. A third of the Democrats siding with Gillibrand, two thirds with Warren.
  • @sahilkapur Sahil Kapur on x
    Senate advances major crypto bill “The procedural vote on the GENIUS Act—which would establish the first regulatory framework for issuers of stablecoins, digital tokens pegged to fiat currencies like the US dollar—was 66-32.” @kate_santaliz & @news_jul: https://www.nbcnews.com/..…
  • @brendanpedersen Brendan Pedersen on x
    Fascinating moment. Separately, I don't think Gillibrand or Warren knew where Schumer would fall until he voted no. Gillibrand's expression soured sharply. Warren's also darkened for a moment, thinking Schumer voted “yes,” but broke into a smile after she realized he was a no
  • @jpl606 John Lindsey on x
    @StevenTDennis Astounding that 1/3 of Dems siding with Gilibrand on this scam. But not terribly surprising.
  • @mdudas Mike Dudas on x
    sorry senator, i'm going to need to see your name, e-mail, phone number, address, passport, driver's license, password, crypto balance, routing number and bank statements before i can verify your vote on the stablecoin bill [image]
  • @brendanpedersen Brendan Pedersen on x
    The Senate voted 66-32 to advance the GENIUS Act, which would regulate stablecoins for the first time at the federal level. A total of 16 Democrats voted to invoke cloture on the motion to proceed, a critical first step. A final passage vote isn't likely until after Memorial Day
  • r/politics r on reddit
    Stablecoin Legislation Advances in Senate in Big Win for Crypto