GENIUS Act: Crypto Advocacy Groups Urge Swift Senate Passage of Stablecoin Bill

Key Insights:

• The GENIUS Act, a stablecoin bill, nears Senate passage with bipartisan support.
• Democrats added stronger consumer and anti-fraud provisions to the bill recently.
• A credit card fee amendment threatens to delay the GENIUS Act’s progress.

Crypto industry lobby groups are pressing Capitol Hill to rapidly approve a landmark stablecoin bill. Warning that unrelated amendments could derail long-awaited legislation.

The GENIUS Act – aimed at creating a federal framework for the U.S.-dollar-backed stablecoins- has already cleared key steps in the Senate. It won a 66-32 procedural vote on May 19 and again on June 2 after Democrats secured stronger consumer and anti-fraud provisions.

Stablecoins now represent a roughly $250 billion market, and supporters say clear rules are needed. But industry backers fear a separate fight over credit card swipe fees could slow the bill down.

GENIUS Act Stablecoin Bill Nears Senate Finish Line

The revised GENIUS Act – named for “Guiding and Establishing National Innovation for U.S. Stablecoins” – is sponsored by Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.).

It would require stablecoin issuers to register with regulators and hold secure reserves. After initial bipartisan support, Democrats had paused the bill in early May, demanding tighter rules to curb risks, including on foreign-issued coins and money laundering.

Those fixes were added, and on June 2, the Senate voted 66-32 to advance the bill to final passage. “We need clear rules of the road to protect consumers, defend national security, and support responsible innovation,” said Sen. Mark Warner (D‑Va.), noting the stablecoin market “has reached nearly $250 billion”.

With that vote, stablecoin legislation appears on track to pass the Senate this week. Industry spending on crypto advocacy has been heavy: lobbyists spent over $119 million supporting pro-crypto candidates last year and have a growing war chest.

Analysts at Capital Alpha Partners estimate a 60–65% chance the GENIUS Act will become law, far higher than the 10–15% odds they assign to the competing credit-card amendment.

In recent days, the bill has also gained back some Democrats who had withdrawn support due to concerns about former President Trump’s crypto interests.

Credit-Card Fee Amendment Threatens Delay

However, the GENIUS Act bill now faces a new hurdle. Senators Dick Durbin (D‑Ill.) and Roger Marshall (R‑Kan.) have filed to attach the Credit Card Competition Act (often called the “swipe fee” bill) to the stablecoin legislation.

This would force payment networks like Visa and Mastercard to compete on the fees charged to merchants. Retailers and business groups back the change, pointing out that U.S. merchants paid a record $187.2 billion in credit card swipe fees last year.

They argue reform would lower costs for businesses and consumers. Banks, credit unions, and card networks strongly oppose it, saying it would slash rewards and benefits for card users.

Source: X

The swipe-fee fight has long split Congress. Sen. Thom Tillis, an original supporter of the stablecoin bill, warned this week that adding the credit card amendment would be “a terrible policy” and pledged to “tank” the entire stablecoin bill if it attaches.

The Stablecoin Effort

Durbin himself quipped that the amendment “puts me on the spot” since he’s already a sponsor of the swipe-fee bill. Neither Durbin nor Marshall has committed to forcing a vote on the amendment yet.

For now, Senate leaders say they will allow amendments, but the stablecoin effort can only afford a few defections: 69 senators already voted to advance it, and 60 votes total are needed to pass.

Banks and card issuers have lobbied hard against the pairing. “It’s awful policy,” said Tillis, reflecting industry opposition.

Retail groups counter that Congress should cap runaway swipe fees that they say fuel inflation. In the push-pull, some industry experts worry the amendment could blow up a deal already years in the making.

Politico reported that Sen. Tillis “went on to say, ‘I’d go from being a co-sponsor to trying to figure out how to tank the stablecoin bill if the swipe fee measure got attached.’”

Lobbyists Urge Lawmakers to Stay Focused

Facing this potential roadblock, crypto advocacy groups are scrambling. Four major trade associations – the Blockchain Association, the Crypto Council for Innovation, the Digital Chamber, and the DeFi Education Fund – issued a joint statement on June 2 urging senators to stick to the GENIUS Act bill’s original focus.

Source: X

The statement said,

“As the bill continues through the amendment process, we respectfully urge lawmakers to remain committed to its central goal: providing a targeted and comprehensive approach to stablecoin oversight.”

The new Blockchain Association chief, ex-CFTC commissioner Summer Mersinger, is leading this push on the Hill. The groups point out that the bill already imposes stringent controls on issuers (like requiring reserves and FTC/CFPB supervision) and that adding unrelated measures risks scuttling progress.