Senate approves GENIUS Bill, ushering in new era of federal stablecoin regulation
In a landmark move for the
cryptocurrency industry
, the
US Senate
on Tuesday passed the
GENIUS Act
, the first federal legislation to establish clear rules for stablecoins—digital tokens pegged to the US dollar. The bipartisan bill, which passed by a 68-30 margin, is seen as a pivotal step toward legitimizing and regulating a fast-growing sector that has long operated in legal uncertainty.
The GENIUS Act—short for Guiding and Establishing National Innovation for US Stablecoins—sets out comprehensive requirements for companies issuing stablecoins. These include full reserve backing, monthly public audits, and strict compliance with anti-money laundering laws.The bill also opens the door for a range of issuers, from banks and fintech firms to major retailers, to launch their own stablecoins or integrate them into payment systems.
Senator Bill Hagerty (R-Tenn.), the bill's chief sponsor, called the legislation 'a vital move toward dismantling the barriers between conventional financial markets and decentralized systems,' emphasizing that it would modernize the nation's financial infrastructure. Senate Banking Committee Chairman Tim Scott (R-S.C.) added, 'Today is a bold step forward—not just for financial innovation, but for American leadership, consumer protection, and economic opportunity'.
The bill's passage is a major win for the digital asset industry, which invested an estimated $250 million in the 2024 election cycle to back what is now considered the most pro-crypto Congress in US history.
Treasury Secretary
Scott Bessent told lawmakers that the US stablecoin market could expand nearly eightfold to surpass $2 trillion in the coming years.
However, the legislation has not been without controversy. Progressive Democrats, led by Senator Elizabeth Warren (D-Mass.), criticized the bill for lacking anti-corruption provisions and warned it could benefit President Trump and his family, who have significant crypto holdings. Despite these concerns, the Senate's bipartisan support signals a rare moment of consensus on digital asset policy.
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The GENIUS Act now heads to the Republican-led House, where it faces further negotiation and reconciliation with a similar House bill. If enacted, the law would require all stablecoins to be backed by liquid assets such as US dollars or short-term Treasuries, and mandate monthly reserve disclosures to the public. The measure prohibits yield-bearing consumer stablecoins and centralizes regulatory authority with the Treasury, marking a new era of federal oversight for the crypto sector.
If signed into law, the GENIUS Act is expected to boost confidence in digital dollars, accelerate payment innovation, and cement the US as a leader in global financial technology.
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