The U.S. Senate has passed the GENIUS Act, a landmark piece of legislation that for the first time establishes a federal regulatory framework for stablecoins, marking a significant legislative win for the cryptocurrency sector. The bill, which passed with a 68-30 vote, grants the U.S. Department of the Treasury extensive oversight powers and outlines clear rules for issuing dollar-pegged digital assets. The legislation, officially titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act, sets requirements for full reserve backing, monthly audits, and strict anti-money laundering compliance.
It also allows a broader range of issuers including banks, fintech firms, and major retailers to launch or integrate stablecoins into payment systems under federal regulation. Senator Kirsten Gillibrand, one of the bill’s co-sponsors, described the act as a measure that balances innovation with consumer protection while reinforcing the role of the U.S. dollar in the global economy. The bill’s passage follows months of negotiations and comes amid growing momentum in the digital asset space, with corporations such as Amazon and Walmart reportedly exploring stablecoin-based services.
Despite the bipartisan support, the bill faced criticism from Democratic lawmakers who objected to its lack of provisions preventing presidential financial involvement in digital assets. Senator Jeff Merkley led an effort to include a clause barring elected officials from profiting from cryptocurrencies, a proposal that failed to make it into the final legislation. Merkley and other Senate Democrats had earlier introduced a separate bill aiming to impose such restrictions.
President Donald Trump’s involvement in the digital asset space has drawn scrutiny, particularly after financial disclosures showed he earned $57 million from token sales in 2024. His affiliated platform, World Liberty Financial, holds a large reserve of its own governance tokens, and his broader crypto ventures include tokenized assets, digital funds, and a newly launched mining firm. The GENIUS Act now moves to the House of Representatives, where a competing bill known as the STABLE Act awaits deliberation.
While both versions prohibit interest-bearing stablecoins aimed at consumers, they differ in regulatory structure. The Senate version centralizes oversight within the Treasury Department, whereas the House proposal distributes responsibilities across several federal agencies. Industry analysts view the Senate’s approval as a pivotal development, with Treasury Secretary Scott Bessent estimating that the U.S. stablecoin market could grow to over $2 trillion in the coming years.
Meanwhile, traditional financial institutions and technology platforms continue to adjust, with firms such as JPMorgan and Shopify already piloting blockchain-based payment systems. The final version of the bill must now be reconciled with the House’s version before becoming law, setting the stage for further political and industry debate. – By CryptoWire News Desk.