- The U.S. Senate passed the GENIUS Act, which introduces federal rules for stablecoins.
- The bill requires dollar-backed stablecoins to be supported by liquid assets and issuers to release monthly reserve reports.
- The act passed with bipartisan support and will now move to the House of Representatives for further consideration.
- Key lawmakers and experts both praised and criticized the bill for its approach to crypto regulation and national security.
- If approved by the House, this would be the first comprehensive federal law targeting the cryptocurrency industry in the U.S.
The U.S. Senate approved the GENIUS Act on Tuesday, setting the stage for new federal regulations on stablecoins—digital assets tied to the U.S. dollar. Senators passed the bill with a 68–30 vote in Washington, D.C., which, if enacted, will require all issuers of U.S. dollar-linked stablecoins to back the tokens with liquid assets such as cash or short-term Treasuries, and to publicly disclose reserve details monthly.
Support for the bill came from both Republicans and Democrats, pushing it forward as the first federal move of its kind. The legislation must next pass the House of Representatives, currently controlled by the Republican party, before it can become law with President Donald Trump’s signature. The crypto industry spent about $119 million in 2024 supporting lawmakers in favor of digital asset regulation, a figure highlighted in the bill’s legislative journey.
“This bill marks a major milestone,” stated Andrew Olmem, a former national economic policy adviser. “It puts in place the first federal rules to oversee stablecoins, which are becoming a core part of modern finance.” Stablecoins are cryptocurrencies designed to keep their value at one-to-one parity with the U.S. dollar. They are used by traders to shift funds quickly across crypto markets. Over the past three years, their usage has grown sharply, stirring debate over transparency, risk, and financial security.
Under the GENIUS Act, issuers would need to hold liquid reserves and make monthly disclosures about their holdings. The regulation applies only to dollar-backed stablecoins and not to algorithmic or non-dollar stablecoins.
Some criticism accompanied the bill’s advance. Senator Elizabeth Warren argued that it could result in major technology companies and foreign actors flooding the U.S. marketplace with unregulated digital currency. “This bill supercharges the stablecoin market while opening the door to corruption and risks to national security,” Warren said on the Senate floor.
Consumer advocacy groups echoed these points, with Bartlett Naylor, a financial policy expert, criticizing lawmakers for moving forward without fully addressing potential conflicts linked to the president’s own crypto activities. President Trump’s involvement includes launching a token called $TRUMP and a stake in World Liberty Financial. The White House has stated his assets are in a trust managed by his children.
State regulators also voiced concerns. The Conference of State Bank Supervisors published a statement urging changes to prevent non-insured institutions from operating across state lines without proper oversight.
The House of Representatives could alter the bill before voting. If the GENIUS Act becomes law, it would introduce the first federal framework for stablecoin oversight in the United States.
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