In a historic vote on Tuesday, the U.S. Senate passed the GENIUS Act, a sweeping bill that for the first time establishes federal standards for U.S. dollar-pegged stablecoins. The legislation passed 68–30, marking a significant step in integrating digital assets into the mainstream financial system.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS, introduces robust guardrails for stablecoin issuers, including requirements for full reserve backing, monthly audits, and strict anti-money laundering compliance. The bill also creates a federally sanctioned path for private entities — from banks and fintech firms to major retailers — to issue digital dollars under Treasury oversight.
“This bill protects consumers, enables responsible innovation, and safeguards the dominance of the U.S. dollar,” said Sen. Kirsten Gillibrand (D-NY), one of the bill’s key sponsors.
While the bill still faces negotiation in the Republican-controlled House, its Senate passage is seen as a milestone for both crypto policy and the rising political influence of the digital asset industry. The crypto sector reportedly poured around $250 million into the 2024 election cycle, helping elect what is now considered the most pro-crypto Congress in U.S. history.
Sen. Cynthia Lummis (R-WY), another sponsor, admitted the path to passage was fraught. “We thought stablecoins would be the easiest to regulate,” she said at the Bitcoin 2025 conference. “It has been extremely difficult.”
The GENIUS Act grants sweeping authority to Treasury Secretary Scott Bessent, who recently told Congress that the U.S. stablecoin market could balloon to $2 trillion in the coming years. The bill restricts big tech firms from issuing stablecoins directly unless they partner with regulated entities, addressing antitrust concerns.
Still, critics remain. Sen. Jeff Merkley (D-OR) blasted the bill as a “rubberstamp of Trump’s crypto corruption,” citing the former president’s deep involvement in the digital asset space. Merkley and Senate Democrats pushed for amendments to block elected officials from profiting from crypto ventures — efforts that were ultimately stymied.
Trump’s financial disclosures revealed he earned at least $57 million in 2024 through token sales tied to his firm World Liberty Financial and holds nearly $1 billion in digital assets, including governance tokens, a $2.5 billion Bitcoin treasury, and a newly launched mining operation.
The House will now consider its own version of the legislation, known as the STABLE Act, which differs in regulatory structure — splitting oversight among the Federal Reserve, OCC, and others — potentially setting up a prolonged reconciliation process.
Despite the uncertainty ahead, the Senate’s vote signals a clear shift: stablecoins and digital dollars are no longer fringe innovations — they are now central to the future of U.S. financial infrastructure.
