In a landmark decision, the U.S. Senate has officially passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins of 2025) with a bipartisan vote of 68-30, signaling the first-ever approval of major crypto legislation in the upper chamber. The bill is now headed to the House of Representatives, marking a crucial moment in the evolving landscape of digital asset regulation.
Strong Bipartisan Support Shifts Crypto Policy Landscape
The passage saw a wave of Democratic support, despite past opposition from key members of the party. The shift illustrates growing consensus that U.S. leadership in digital finance requires legal clarity. The GENIUS Act is designed to regulate stablecoins, digital tokens pegged to the U.S. dollar, by placing rigorous requirements on reserve backing, transparency, and compliance.
What the GENIUS Act Includes
As drafted, the bill would:
- Mandate one-to-one backing of stablecoins with cash or short-term U.S. Treasuries
- Require issuer transparency and reserve audits
- Enforce anti-money laundering (AML) and know-your-customer (KYC) measures
- Place issuers under federal regulatory supervision, potentially including capital rules
This framework targets stablecoin issuers like USDC, USDT, and Ripple, aiming to increase trust and regulatory certainty for users and institutions.
Industry Leaders Applaud the Move
Digital finance organizations have hailed the Senate’s approval as a “historic step forward”. They argue it could lay the foundation for wider adoption and establish the U.S. as a global leader in digital currency innovation.
Challenges Remain in the House
Although the Senate vote is a milestone, the bill’s future in the House remains uncertain. Lawmakers may pass it as is or propose amendments, which would require another Senate review. The GENIUS Act is also closely tied to the Digital Asset Market Clarity Act, a broader bill defining the legal structure of the U.S. crypto market.
Why Stablecoin Regulation Matters Now
According to a new report from TRM Labs:
- Stablecoins now represent over 60% of crypto transactions
- More than 90% are pegged to the U.S. dollar
- While 99% of usage is legal, their speed and liquidity also attract illicit activity risks
What’s Next?
The GENIUS Act’s progress marks a turning point in U.S. crypto regulation. If passed by the House, it could bring long-awaited regulatory clarity, encourage institutional participation, and mitigate risks tied to an unregulated stablecoin market. The crypto community now shifts its focus to the House, where the future of the GENIUS Act — and broader digital asset policy — will be decided.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.