Coinbase CEO Brian Armstrong is calling on the US Senate to rally behind the bipartisan legislation aimed at regulating stablecoins, the GENIUS Act. In a statement posted Tuesday on X, Armstrong said Coinbase was in support of the proposed legislation and asked both the House and Congress to see the bill through.
“Congress has a real opportunity this week to advance stablecoin and market structure legislation,” he noted, “and we need 60 votes to get there.”
He added that both chambers of Congress must act now if they hope to pass comprehensive legislation into law before the August recess.
Bill targets dollar dominance on the stablecoin market
The GENIUS Act seeks to establish several federal guidelines for stablecoin issuers, many of whom are currently registered as money service businesses with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) or operate under various state-level licensing systems.
Under the proposed law, issuers would be subject to direct federal oversight by the Office of the Comptroller of the Currency (OCC), alongside other state agencies.
Among its most known provisions, the bill requires stablecoin issuers to maintain a full reserve, backed exclusively by US currency, insured bank deposits, or short-term US Treasury securities, to ensure a 1:1 redemption value.
It bans the issuance of yield-bearing stablecoins and includes a three-year transition period for digital asset service providers to come into compliance.
One of the best overviews I’ve seen of the GENIUS Act. Not wholly surprising to see a lot of debate around the ins and outs of the final bill, but I do hope we see actual legislation passed in the near future—stablecoins feel like such an easy get. https://t.co/sHVdsNW2Lz
— Gage Raju-Salicki | gagesalicki.eth (@gagerajusalicki) May 5, 2025
The bill’s sponsors asserted that the legislation will profoundly help the US dollar maintain its dominance as a reserve currency in both the fiat and crypto global economy. Supporters say it offers much-needed clarity and protection for both consumers and financial markets.
Chris Dixon, managing partner at venture firm Andreessen Horowitz (a16z), also called for the Senate to approve the bill as quickly as possible. “The GENIUS Act will protect consumers and increase transparency, a significant improvement on the status quo,” he wrote on X Tuesday.
Coinbase exec lobbies after Democratic leaders defect from GENIUS Act support
The proposed legislation seemed just one step away from being signed into law, but now faces hiccups after some liberal leaders withdrew their support.
Nine Democratic senators claim the GENIUS Act is a risk to America’s national security, financial accountability, and anti-money laundering (AML) concerns. Notably, four of the dissenting senators had previously voted in favor of the bill in the Senate Banking Committee. Their reversal could jeopardize the bill’s path to the 60 votes needed to move forward.
Among the naysayers is Senator Jeff Merkley (D-OR), who referenced a recent $2 billion deal between a Trump-affiliated crypto firm and a government-backed Emirati fund. The firm, World Liberty Financial, reportedly secured a deposit agreement from an Abu Dhabi-linked venture.
The White House has dismissed any suggestion of impropriety, insisting that Trump’s assets are held in a trust managed by his children. “President Trump is dedicated to making America the crypto capital of the world,” said White House spokeswoman Anna Kelly.
Cryptopolitan reported that Trump critic and Democrat Senator Elizabeth Warren (D-MA) said the legislation would open doors for the president’s family to get richer.
“The Senate legislation will make it easier for the president and his family to line their own pockets. This is corruption and no senator should support it,” she reckoned.
Senator Cynthia Lummis (R-WY), an advocate of crypto legislation and one of the co-sponsors of the GENIUS Act, also said she was worried about the Trump family’s involvement in the industry.
“This is my president that we’re talking about, but I am willing to say that this gives me pause,” Lummis told NBC News.
Senator Bill Hagerty has supposedly told his colleagues they need liberal support, stressing that Republicans alone will not be enough to advance the bill. “We need both sides to work together to bring stablecoin regulation into law,” Hagerty remarked.
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