In a significant development for the digital asset industry, the United States Senate has passed the GENIUS Act, paving the way for a federally recognized regulatory framework for stablecoins.
What is the GENIUS Act?
The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) aims to provide clear guidelines for issuing and managing USD-backed stablecoins. Proposed by Senator Bill Hagerty of Tennessee, the bill seeks to enhance the legal clarity and trust in stablecoin usage while encouraging innovation in the US digital economy.
“With this bill, the United States is one step closer to becoming the global leader in crypto,” Hagerty stated during the Senate session.
Senate Approves with Bipartisan Support
On Tuesday, the Senate voted 68–30 in favor of the amended GENIUS Act, marking strong bipartisan support. This comes approximately six weeks after the bill’s introduction.
The act previously failed a cloture vote in May, largely due to concerns from Democratic lawmakers over former President Donald Trump’s ties to the crypto industry. Trump’s family is known to have significant holdings in World Liberty Financial, which launched its own USD1 stablecoin earlier this year.
Instant Payments and Business Growth
A key feature of the GENIUS Act is its focus on accelerating payments and improving financial access.
“Businesses of all sizes, and Americans across the country, will be able to settle payments nearly instantaneously rather than waiting for days or sometimes even weeks,” said Hagerty.
If enacted, this could modernize the traditional banking system, promoting faster digital settlement and reduced transaction fees.
Next Step: House of Representatives
The bill now heads to the House of Representatives, where the outcome remains uncertain. While Republicans hold a slim majority, the companion STABLE Act could undergo further amendments or delays.
Trump’s AI and crypto policy advisor, David Sacks, has already indicated the former president’s support for the bill—if passed by a Republican-led House.
Conclusion
The passing of the GENIUS Act in the Senate is a milestone moment for stablecoin regulation in the U.S. While hurdles remain in the House, this bill represents a shift toward embracing crypto innovation with regulatory safeguards.
If passed into law, the GENIUS Act could help establish the U.S. as a global hub for regulated digital finance.
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