- The Senate approved the GENIUS Act, the first stablecoin regulation to pass a chamber of Congress.
- The vote was 68-30, with support from 18 Democrats and shifts in voting from some senators.
- The bill now heads to the House, which has its own version called the STABLE Act with key differences.
- Market interest in stablecoins rose, shown by Circle’s recent IPO and new issuers exploring entry.
- Industry leaders voiced optimism, while some banks remain cautious about deposit impacts.
The U.S. Senate passed the GENIUS Act yesterday in Washington, marking the first time a bill dedicated to regulating stablecoins has cleared a full chamber of Congress. Lawmakers voted 68-30, with 18 Democrats joining Republicans in support. The outcome mirrored a recent procedural vote, although Senator Mark Kelly abstained after previously backing the bill, and Senator Jon Ossoff changed his vote to support.
To become law, the measure still needs approval from the House of Representatives, which is reviewing a separate version known as the STABLE Act. This House bill contains several major differences from the Senate’s approach. Successfully reconciling the two versions would create regulatory clarity for the stablecoin market and increase oversight of digital asset activities.
In the days since the Senate vote, several market changes have occurred. The price of shares in stablecoin issuer Circle rose as high as $150, up from its initial price of $31 just weeks earlier. Reports indicate major firms such as Amazon, Walmart, and the DTCC are considering issuing their own stablecoins, while Apple, X (formerly Twitter), Airbnb, and Google may begin using them.
According to Senator Lummis, “Today the Senate took a critical step toward securing U.S. Dollar dominance by passing the bipartisan GENIUS Act. The success of the act hinges on comprehensive market structure legislation that protects consumers, establishes transparency, and creates clearly defined trading regulations. Congress must act quickly.” She noted that about 97% of stablecoins use the U.S. dollar as their base, reinforcing the currency’s global position.
Some industry leaders welcomed the move. Paul Brody of EY said, “Stablecoins are the foundation that will bring consumers, investors, and enterprises on-chain. Payments are just part of the commercial process – for the ecosystem to flourish we need products, services, digital assets and privacy to all scale on chain. This is the starting line, not the finish line.”
Despite optimism, some traditional banks remain wary. There are concerns that stablecoins could threaten deposit levels held by banks. In response, JP Morgan launched its JPMD deposit token on a public blockchain to coincide with the Senate’s vote.
One possible delay may arise if the House decides to combine its stablecoin bill (the STABLE Act) with its market infrastructure proposal known as the CLARITY Act, as reported by Politico. This could slow down the legislative process between the two chambers.
The GENIUS Act’s approval marks a significant step toward the establishment of federal standards for stablecoins. Rules for market infrastructure governing crypto exchanges, custodians, and token issuers (besides stablecoins) are still under discussion.
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