U.S. Senate votes 68–30 to advance GENIUS Act amid Warren’s criticism, as amendments are blocked and stablecoin concerns take center stage. She calls to block the bill, calling it a “national security threat” and “Trump’s corruption mechanism via stablecoins.”
GENIUS Act Moves Forward Without Allowing Amendments
The key bill that promises not only to establish regulation over stablecoins but also appears to pursue several less transparent goals is moving forward without any changes. The decision to invoke cloture on the Hagerty Substitute Amendment to S.1582 effectively ends debate and prepares the bill for a final vote without the possibility of introducing amendments.
Specifically, among the proposed and blocked amendments:
- the Schumer and Blumenthal amendment excluding stablecoin issuance by Big Tech, including X;
- the Merkley amendment limiting issuer self-regulation in the stablecoin market;
- a proposal to mandate independent audits and regular disclosures to federal regulators;
- Hickenlooper’s initiative to protect regional banks from liquidity outflows;
- amendments addressing AML and sanctions compliance for Tether, a foreign-jurisdiction issuer;
- an amendment preserving CFPB authority and consumer protection mechanisms in the event of disputes.
None of these amendments was allowed to proceed to a vote. According to the opposition, this reflects a deliberate avoidance of structural checks in favor of accelerating the bill’s passage. In particular, Senator Elizabeth Warren issued a substantial critique and labeled the GENIUS Act a threat to the United States financial and political stability:
“This bill goes forward without a single chance for a single senator to offer a single amendment.”
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Key Points of Criticism from Senator Elizabeth Warren
Senator Warren drew a parallel between the GENIUS Act and the Commodity Futures Modernization Act of 2000, which many economists view as laying the groundwork for the 2008 financial crisis. According to her:
The GENIUS Act creates an unprecedented institutional anomaly in which the head of the executive branch simultaneously issues and regulates his own financial instrument. This undermines the foundational principle of separation of powers and removes the possibility of independent oversight.
“For the first time in American history, it also makes our president—Donald Trump—the regulator of his own financial product.”
Passing the bill institutionalizes the President’s personal financial gain, establishing a structure in which public regulation serves the private interests of the head of state.
“Trump and his family have already pocketed hundreds of millions of dollars from his crypto ventures, and they stand to make hundreds of millions more from his stablecoin, USD1, if this bill passes.”
The use of the stablecoin USD1 in transactions involving foreign state-affiliated entities expands the issue to a geopolitical level and creates an opening for external influence over U.S. financial processes.
“MGX is chaired by the intelligence chief of the United Arab Emirates and co-owned by a firm with extensive ties to the Chinese government.”
The legislation repeats a dangerous deregulatory scenario that has already contributed to past crises: legitimizing new financial technologies without proper constraints increases their systemic impact and the scope of potential damage.
“This is the same playbook – only this time, the President owns the company.”
Folding stablecoins into the traditional financial system under reduced oversight standards increases the risk of a large-scale crisis and deprives the system of its usual safeguards.
“The GENIUS Act folds stablecoins directly into the traditional financial system, while applying weaker safeguards than banks or investment companies must adhere to.”
The presence of regulatory loopholes permitting unaffiliated DeFi entities and non-compliant stablecoins to access U.S. markets creates direct risks of money laundering, sanctions evasion, and criminal financing.
“The bill text now contains a so-called ‘decentralized finance’ loophole that allows Tether and other noncompliantstablecoins to access U.S. markets without any constraints.”
Granting private tech corporations the ability to issue money threatens the existing banking system, undermines credit access, and transfers control of monetary flows into the hands of unregulated actors.
“If this bill passes, it will allow Elon Musk and Mark Zuckerberg to issue their own money.”
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Conclusion
The 68–30 cloture vote in the Senate potentially clears the way for swift passage of the GENIUS Act, but the controversy surrounding the bill is escalating in proportion to its momentum.
While it is ostensibly framed around regulatory reform, the underlying structure and implications have triggered increasingly sharp warnings from critics. Let’s pay attention to this final bill and its impact on crypto markets and institutional sentiment.
