Bipartisan support pushes the U.S. closer to federal stablecoin regulation as focus shifts to the House of Representatives
GENIUS Act Clears Senate With Strong Support
In a landmark move for cryptocurrency regulation in the United States, the Senate has passed the GENIUS Act — the Guiding and Establishing National Innovation for U.S. Stablecoins — signaling the nation’s first major step toward federal oversight of stablecoins. The bill passed with a 68-30 bipartisan vote, making it the Senate’s first approval of major crypto legislation.
The GENIUS Act is expected to establish a clear regulatory framework for payment stablecoins, promoting U.S. dollar dominance in the digital asset economy. Sponsored by Republican Senator Bill Hagerty, the bill has gained momentum under President Donald Trump’s administration, which has made regulating digital assets a top priority.
What the GENIUS Act Means for Crypto and the U.S. Dollar
“This bill will cement U.S. dollar dominance, protect customers, and drive demand for U.S. Treasurys,” Senator Hagerty stated during Tuesday’s session. The bill requires that all stablecoins be fully backed by U.S. dollars or highly liquid assets and introduces mandatory annual audits for issuers managing more than $50 billion in assets.
The bill also includes bankruptcy protections for stablecoin holders, giving them super-priority status—a right to recover funds ahead of other creditors in case of insolvency.
According to U.S. Treasury Secretary Scott Bessent, stablecoins could become a $3.7 trillion market by 2030, and the GENIUS Act may be the key to making that growth a reality.
Restrictions on Big Tech and Foreign Issuers
To reduce systemic risks, the legislation bars major tech firms such as Meta and Amazon from issuing stablecoins unless they meet strict requirements around financial risk and data privacy. The bill also includes regulations for foreign-issued stablecoins, prompting earlier pushback from Democrats over national security and anti-money laundering concerns.
Trump’s Crypto Push and Political Debate
The Trump administration has strongly supported the bill, despite rising scrutiny over the president’s ties to crypto ventures, including the controversial launch of World Liberty Financial’s own Trump-affiliated stablecoin. Critics have warned of potential conflicts of interest as the administration aligns itself more closely with blockchain startups.
Still, Coinbase’s Chief Legal Officer Paul Grewal called the vote historic: “A year ago I would’ve thought this was a fever dream. Think about how far we’ve come.”
Next Stop: The House of Representatives
The spotlight now shifts to the House, which must decide whether to pass its own stablecoin regulation — the Stablecoin Transparency and Accountability for a Better Ledger Economy Act — or adopt the Senate’s GENIUS Act.
While the House Financial Services Committee has already advanced its version, it has yet to receive a full vote. There’s also discussion of tying stablecoin regulation to a broader crypto market structure bill, though that path is considered politically complex.
Trump has made his position clear: he wants a stablecoin bill signed into law by August. His advisors publicly endorsed the GENIUS Act last week, saying they would recommend that the president sign it if it reaches his desk in its current form.
