Senate Passes Stablecoin Bill in Big Win for Crypto Industry
- The Genius Act establishes the first federal framework for stablecoins, including licensing, reserves, auditing, and AML compliance.
- The bill passed in the Senate with bipartisan support is on its way to the House and likely will be signed into law by President Trump.
- The crypto community welcomes the bill as a milestone, but fears regarding regulatory overreach and privacy still linger.
In a historic milestone for the crypto market, the U.S. Senate approved the Genius Act, a much-anticipated stablecoin bill that brings federal regulation and regulatory certainty to one of the most important parts of the digital asset ecosystem. The bill, which has gained bipartisan support, now heads to the House of Representatives and is expected to land on President Donald Trump’s desk in the coming days.
Passed by a 65–33 vote, the Genius Act marks the first major piece of crypto-specific federal legislation and has been hailed by industry leaders as a foundational step toward broader digital asset regulation in the United States.
The Genius Act short for Guiding and Ensuring National Innovation and Uniform Stability Act creates a federal framework for the issuance and regulation of stablecoins, digital tokens that are typically pegged to fiat currencies like the U.S. dollar.
Under the bill:
- Only federally approved or state-licensed entities will be allowed to issue stablecoins.
- Issuers must maintain 1:1 reserve backing, conduct regular audits, and adhere to anti-money laundering (AML) rules.
- The Federal Reserve and Office of the Comptroller of the Currency (OCC) will play key roles in supervision.
The legislation also includes consumer protection measures and gives regulators authority to intervene in cases of non-compliance or financial instability.
Political and Industry Impact
The crypto sector has long yearned for regulatory clarity, particularly as regulators in the U.S. have battled over the treatment of different sorts of digital assets. The Genius Act was promoted by a group of moderate Democrats and crypto-friendly Republicans and constitutes a rare point of crypto policy agreement.
President Trump has already indicated favorability towards blockchain technology and stablecoins as substitutes for CBDCs, which he has protested. If the House approves it, the bill will surely be signed into law by Trump, further solidifying his administration’s pro-crypto stance as the country approaches the 2026 midterms.
“This bill provides the U.S. with a clear leadership role in regulating stablecoins, advancing innovation while sustaining financial stability,” commented Sen. Cynthia Lummis (R-WY), co-sponsor of the bill.
Others counter that federal regulation could choke off competition and innovation, especially for smaller or decentralized initiatives. Some civil liberties organizations have also expressed worries about privacy implications.
Market Reaction and Global Implications
Crypto markets responded positively to the Senate vote, as major stablecoins such as USDC and USDT registered minor increases in trading volumes. Crypto exchanges and stocks also saw minor gains.
Analysts say the U.S. move could push other jurisdictions especially in Europe and Asia to accelerate their own stablecoin frameworks. The bill also raises the bar for global AML compliance standards.
Stablecoin issuers like Circle, Paxos, and PayPal have welcomed the bill, saying it validates the role of regulated digital dollars in the modern financial system.
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Senate Passes Stablecoin Bill in Big Win for Crypto Industry
- The Genius Act establishes the first federal framework for stablecoins, including licensing, reserves, auditing, and AML compliance.
- The bill passed in the Senate with bipartisan support is on its way to the House and likely will be signed into law by President Trump.
- The crypto community welcomes the bill as a milestone, but fears regarding regulatory overreach and privacy still linger.
In a historic milestone for the crypto market, the U.S. Senate approved the Genius Act, a much-anticipated stablecoin bill that brings federal regulation and regulatory certainty to one of the most important parts of the digital asset ecosystem. The bill, which has gained bipartisan support, now heads to the House of Representatives and is expected to land on President Donald Trump’s desk in the coming days.
Passed by a 65–33 vote, the Genius Act marks the first major piece of crypto-specific federal legislation and has been hailed by industry leaders as a foundational step toward broader digital asset regulation in the United States.
The Genius Act short for Guiding and Ensuring National Innovation and Uniform Stability Act creates a federal framework for the issuance and regulation of stablecoins, digital tokens that are typically pegged to fiat currencies like the U.S. dollar.
Under the bill:
- Only federally approved or state-licensed entities will be allowed to issue stablecoins.
- Issuers must maintain 1:1 reserve backing, conduct regular audits, and adhere to anti-money laundering (AML) rules.
- The Federal Reserve and Office of the Comptroller of the Currency (OCC) will play key roles in supervision.
The legislation also includes consumer protection measures and gives regulators authority to intervene in cases of non-compliance or financial instability.
Political and Industry Impact
The crypto sector has long yearned for regulatory clarity, particularly as regulators in the U.S. have battled over the treatment of different sorts of digital assets. The Genius Act was promoted by a group of moderate Democrats and crypto-friendly Republicans and constitutes a rare point of crypto policy agreement.
President Trump has already indicated favorability towards blockchain technology and stablecoins as substitutes for CBDCs, which he has protested. If the House approves it, the bill will surely be signed into law by Trump, further solidifying his administration’s pro-crypto stance as the country approaches the 2026 midterms.
“This bill provides the U.S. with a clear leadership role in regulating stablecoins, advancing innovation while sustaining financial stability,” commented Sen. Cynthia Lummis (R-WY), co-sponsor of the bill.
Others counter that federal regulation could choke off competition and innovation, especially for smaller or decentralized initiatives. Some civil liberties organizations have also expressed worries about privacy implications.
Market Reaction and Global Implications
Crypto markets responded positively to the Senate vote, as major stablecoins such as USDC and USDT registered minor increases in trading volumes. Crypto exchanges and stocks also saw minor gains.
Analysts say the U.S. move could push other jurisdictions especially in Europe and Asia to accelerate their own stablecoin frameworks. The bill also raises the bar for global AML compliance standards.
Stablecoin issuers like Circle, Paxos, and PayPal have welcomed the bill, saying it validates the role of regulated digital dollars in the modern financial system.
Highlighted Crypto News Today:
SEC Delays Decision on Franklin Templeton’s Solana and XRP ETFs Until Late 2025
Read More
South Korea Explores Won Stablecoin as Bank of Korea Prioritizes Caution