Coinbase Global Inc. COIN CEO Brian Armstrong celebrated a significant milestone for cryptocurrency regulation after the GENIUS Act cleared its first major procedural hurdle in the Senate with bipartisan support.
What Happened: Armstrong described the advancement as “a huge win for crypto and the future of onchain innovation in America” after Coinbase Chief Policy Officer Faryar Shirzad announced that 16 Democrats joined Republicans to pass an early procedural vote.
“Crypto is again showing that it’s the biggest bipartisan issue in play on the Hill,” Shirzad noted in his social media post, thanking several senators for their efforts.
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, introduced by Sen. Bill Hagerty (R-TN), aims to provide a comprehensive regulatory framework for payment stablecoins – digital assets pegged to traditional currencies like the U.S. dollar.
The bill outlines operational standards, consumer protections, and compliance requirements with existing financial laws, including the Bank Secrecy Act.
However, the progress comes amid growing tension, as several Senate Democrats who previously supported the bill in committee suddenly withdrew their backing.
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Why It Matters: The $200 billion stablecoin market currently exists in a regulatory gray area, with stakeholders arguing that a federal framework is essential for U.S. competitiveness in financial innovation.
The legislation has become increasingly politicized due to President Donald Trump‘s cryptocurrency ventures, including World Liberty Financial’s planned stablecoin. Sen. Elizabeth Warren (D-Mass.) has criticized the bill for potentially enabling political corruption, highlighting concerns about elected officials’ involvement in stablecoin businesses.
Coinbase executives have emphasized the urgency of moving forward. “The Senate should start debating and stop politicking – immediately,” said Coinbase Chief Legal Officer Paul Grewal, warning that “American voters will remember if this unique opportunity to act is wasted.”
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