U.S. senators are preparing to vote on the highly anticipated Stablecoin bill, which has recently failed to pass Cloture. The bill has a new bipartisan amendment to advance legislation in the coming weeks after facing opposition and support from Senate Democrats.
Stablecoin bill faces second set movement
One week after failing to pass the U.S. Senate John Thune criticized the revised guidance and the establishment of national innovation (GENIUS) after bipartisan efforts to restore legislation.
Senator files for second cloture motion on the GENIUS Act. Source: Congress.gov
The bill sponsored by Republican Senator Bill Hagerty failed to pass the motion on May 8, after several lawmakers, including two Republican senators, quit their support before the vote.
It is worth noting that when the process required 60 senators to agree to raise legislation to open debate, the regulation received only 49 votes. Prior to last week’s failure, the Genius Act was considered a bipartisan effort to provide regulatory clarity, with various Senate Democrats supporting the bill.
The bill has various amendments to address the concerns of Democratic senators, including stricter requirements for stable issuers and anti-money laundering (AML). But in the opposition statement, ten senators, including four Democrats who previously supported the bill, criticized the revised version of the legislation.
The draft has omitted basic AML and national security safeguards and has ambiguous regulations that can expose the cryptocurrency market to exploitation, leading to its failure, lawmakers suggest.
Now, journalist and podcast host Eleanor Terret reported that Senator Thune filed a second inventory motion on May 15 and plans to vote on Monday night after various amendments to address Democratic concerns.
The bipartisan amendment is not enough
As Bitcoiners reported, U.S. senators in both countries have been working to “quickly restore” stable legislation since their failure on May 8.
Senator Hagerty, the sponsor of the bill, recently told Bloomberg that staff from both parties continue to work on the Genius Act, hoping that Senate Democrats would agree to pass the bill before the May 26 anniversary holiday.
Bipartisan revisions of bipartisan regulations reportedly include new languages about consumer protection, ethics, restrictions on large technology issuers, and other provisions.
According to a draft page shared by Terret, the bill now prohibits non-financially publicly traded companies, such as Meta, Amazon, Google and Microsoft, to maintain “separation between banks and businesses” unless they meet strict standards related to financial risk, consumer data and fair business practices.
New bipartisan amendments to the GENIUS Act. Source: Eleanor Terret on X
Additionally, it determines that issuers cannot use brands related to the United States, prohibiting the use of terms such as “US,” “US government” or “USG” in Stablecoin’s name to prevent consumers from being confused with U.S.-backed tokens. This directly responds to Senator Elizabeth Warren’s concerns about potential “crypto corruption.”
The bill expands moral coverage for special government employees, adding that regular and special government employees, including Elon Musk and the White House AI & Crypto Tsar (David Sacks), adhere to conflicts of interest procedures.
Meanwhile, the bipartisan amendment also strengthens the Treasury’s law enforcement capabilities and ensures that the agency “can suspend the issuer’s registration after reckless and intentional violations.”
Despite the changes, a recent memorandum by Democratic staff on the Senate Banking Committee shows that the bill is not enough to pass the bill to vote next week because “many new changes are fig leaves because it creates significant flaws that endanger consumer protection and national security.”
The Democratic analysis on Thursday confirmed that “the current draft paves the way for more Trump crypto corruption, expands “huge national security loopholes” and still allows large tech companies to release stable companies while failing to address several other “basic flaws.”
Bitcoin (BTC) trades at $103,695 in the one-week chart. Source: BTCUSDT on TradingView
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