GENIUS Act Moves to Senate Floor: A Defining Moment for Stablecoin Policy— Credit Union Positioning

Posted by Ryan Fitzgerald on June 5, 2025

The GENIUS Act is officially in motion on the Senate floor, likely marking a historic step toward the first congressional framework for regulating stablecoins in the U.S. While this is a major milestone in digital asset policy, the path forward is anything but straightforward. Internal discussions and negotiations have intensified as amendments emerge that could fundamentally alter—or even doom—the bill’s chances.

The GENIUS Act—authored by Senators Cynthia Lummis (R-WY) and Bill Hagerty (R-TN)—aims to establish a federal regulatory structure for a U.S. stablecoin payments system. The bill includes key provisions to ensure that credit unions are recognized and included as eligible participants in the issuance and custody of stablecoins. The bill also requires that non-traditional financial providers meet similar BSA/AML requirements as traditional institutions, helping level the compliance playing field. With more than $249 billion in stablecoins currently in circulation globally, the need for federal policy guidance is increasingly urgent.

During GoWest’s Spring Hike the Hill May 20-21, advocates met with Senator Lummis and raised important concerns regarding a potential amendment that could introduce language from the harmful Credit Card Competition Act (CCCA). This timely dialogue provided her with direct feedback from her constituents and was a perfect reminder of the value of credit union voices in the legislative process, especially when policy changes may have far-reaching implications.

Where Things Stand Now

Following cloture, the GENIUS Act will move to the full Senate for active consideration, with a number of amendments having been filed. While many are technical, procedural, or looking to add additional oversight to the Stablecoin industry, there are two major policy amendments that not only give us heartburn, we would consider them to be “deal breakers:”

1. The Marshall-Durbin Amendment (S. AMDT. 2229):

This amendment effectively resurrects the Credit Card Competition Act (CCCA) provisions, which were floated in both the 117th and 118th Congresses. Though not yet reintroduced in the 119th, its inclusion here is significant. The amendment would impose strict routing requirements and price caps on credit card interchange fees—mirroring the Durbin Amendment’s treatment of debit cards in the Dodd-Frank Act.

The financial impact of this could be severe. Credit unions and other financial institutions rely on interchange revenue to support fraud mitigation, cardholder services, and financial inclusion programs. Imposing price controls in today’s high-fraud, high-cost environment would erode these capabilities. Meanwhile, big-box retailers stand to gain significantly from reduced processing costs. GoWest, along with America’s Credit Unions, the Electronic Payments Coalition, and other leagues, are in strong opposition and have been actively lobbying members of the Senate to keep this language out of the final package.

2. The Hawley Amendment (S. AMDT. 2239):

This amendment proposes a federal 10% cap on credit card interest rates—language borrowed from S. 381, co-sponsored by Senators Josh Hawley (R-MO) and Bernie Sanders (I-VT). While the measure has limited support in the Senate, its inclusion would drastically alter the bill’s scope, and we are actively involved in opposing it.

High Stakes for the GENIUS Act

Make no mistake: inclusion of either amendment could sink the GENIUS Act. Not only would it fracture the fragile bipartisan support needed for passage in the Senate, but it would also make the bill “Dead on Arrival” in the House. House Financial Services Committee Chair French Hill (R-AR)—a former community banker with strong views on both issues—has made it clear he won’t move a bill with the CCCA or interest rate cap language attached.

Senators Lummis and Hagerty, in coordination with Senate Majority Whip John Thune (R-SD) have been working to find a viable path to passage that preserves the core intent of the GENIUS Act while deflecting these problematic amendments.

It appears the issue came to a head during a recent Republican Majority luncheon, earlier this week, where sponsors, co-sponsors and other Senators were diligently pushing for a clean version of the stablecoin legislation, which is a priority for both Senate and House majority, but also for President Trump. The GoWest advocacy team is hearing rumblings that there may have been an agreement struck that will shelve the “poison pill” amendments on the GENIUS Act, but potentially shift the amendments to be considered on other important legislative measures, like the National Defense Authorization Act or the Farm Bill Reauthorization.

Although there appears to be an agreement to move the GENIUS Act to the floor for full consideration, Senator Marshall may be attempting to use some Senate rules to try and get a vote or some type consideration on the CCCA amendment language.

What’s at Stake for Credit Unions?

For the credit union system, the stakes are high. A clean version of the GENIUS Act would:

• Ensure early inclusion of credit unions in a regulated stablecoin framework.
• Prevent regulatory arbitrage by requiring non-bank issuers to meet AML/BSA obligations.
• Enable custody of digital assets by credit unions, rather than relegating us to the sidelines.

Senator Lummis’s team deserves credit for keeping credit unions front and center during the drafting process, and our collective advocacy helped reinforce our position during the Hike and follow-up outreach.

What We’re Doing Now

GoWest remains in close coordination with our Senate delegation, have voiced and will continue to communicate our strong opposition to both problematic amendments. In addition, we are working closely to help shape the narrative to avoid “call to action” fatigue, given our recent intensive tax fights.

We continue to monitor developments in real-time and will share updates as the floor debate evolves. Should a critical vote be imminent, or new negotiations shift the dynamic, we will quickly evaluate whether broader member engagement is necessary.

The next week to two weeks will be pivotal—not just for the GENIUS Act, but for how credit unions are positioned in the fast-developing digital asset ecosystem. We are in the room and on equal footing with our financial service counterparts, now. GoWest is doing everything possible to ensure we stay there, while helping the sponsors fend off unfriendly amendments. The GoWest advocacy team will continue to keep our members apprised of all of the moving components, and if quick action will be necessary.

Posted in Advocacy on the Move, Federal Advocacy.