- Senate passes GENIUS Act 68–30, advancing stablecoin regulation to the House vote.
- GENIUS mandates full backing, audits, and restricts non-financial firms from issuing stablecoins.
- Political tensions persist, but lawmakers aim for stablecoin legislation before August.
The U.S. Senate has passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act with a strong, bipartisan 68–30 vote. The landmark legislation creates the first comprehensive federal framework for regulating stablecoins. The bill now moves to the House of Representatives for a final, decisive vote expected in the coming weeks.
This represents a major victory for the crypto industry, which has long advocated for clear federal rules to facilitate broader institutional adoption.
A Look Inside the “GENIUS Act” and Its Key Provisions
The GENIUS Act outlines several key legal requirements for stablecoin issuers. It mandates that stablecoins must be fully backed by US dollars or similarly liquid assets. The bill also requires issuers with market capitalizations exceeding $50 billion to undergo annual audits.
Related: Senator Hagerty’s GENIUS Act Aims to Pass Stablecoin Bill in 100 Days
In addition, the legislation sets compliance standards for foreign stablecoin issuers, including major players like Tether. The bill restricts non-financial public companies, such as Meta and Amazon, from issuing stablecoins unless they meet specific risk management and privacy protections.
Legislation Now Moves to the House for Final Decision
The crypto industry has long advocated for clear regulations around stablecoins, arguing that federal rules could facilitate broader adoption. Industry groups spent over $119 million supporting pro-crypto congressional candidates in the previous election cycle to encourage bipartisan legislation.
Previously, the House of Representatives passed a stablecoin bill, but the Senate, under
Democratic control at the time did not advance it, causing the bill to expire. However, the current GENIUS Act is the first comprehensive federal stablecoin legislation to clear the Senate.
Political Dynamics and Upcoming Vote
Under President Trump’s administration, the White House has emphasized the importance of passing stablecoin legislation, with advisers setting a goal of enacting a bill before August. However, political tensions remain due to conflicts over Trump’s own crypto ventures, which have complicated bipartisan cooperation.
Related: The GENIUS Act Final Decision: How Will it Affect the Crypto Market
Despite these challenges, Senate Majority Leader Bill Hagerty stated that the bill moves the US closer to a leading role in the global crypto market. The House will now weigh the Senate’s version against its own and is expected to hold a vote soon.
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