U.S. Senate Approves Bipartisan “GENIUS Act” to Regulate Dollar-Pegged Stablecoins
The U.S. Senate on Tuesday voted 68-30 to advance the Generational Economic Network Innovation and Utility of Stablecoins (GENIUS) Act, the first comprehensive federal framework aimed at overseeing U.S.-dollar-pegged cryptocurrency tokens.
Stablecoins—digital assets designed to hold a constant value, typically US$1—play a central role in crypto markets by allowing traders to move quickly between tokens and payments. Industry advocates have long argued that clearer rules would boost confidence and accelerate mainstream use.
Key provisions
- Reserves: Stablecoins must be backed 1:1 by high-quality, liquid assets such as dollars and short-term Treasuries.
- Transparency: Issuers would publish monthly reserve reports and undergo regular attestations.
- Supervision: The legislation tasks federal and state banking regulators with licensing and examination authority, while leaving room for additional consumer-protection measures.
Andrew Olmem, a former National Economic Council official now at Mayer Brown, called the vote “a major milestone” that “establishes, for the first time, a regulatory regime for a rapidly developing financial product.”
The Republican-controlled House must pass its own version before the measure reaches President Donald Trump’s desk. The White House has signaled support; Bo Hines, who chairs the administration’s Council of Advisers on Digital Assets, said the president wants a bill enacted “before August.”
The crypto industry—after spending more than US$119 million backing pro-digital-asset candidates in last year’s elections—largely welcomed the outcome. A prior House bill stalled in the last Congress when the Senate, then under Democratic control, chose not to consider it.
Some Senate Democrats supported Tuesday’s measure, but others raised concerns. Senator Elizabeth Warren argued the bill could leave gaps for money laundering and allow large technology firms to issue private stablecoins without sufficient oversight. Consumer group Public Citizen said lawmakers “forfeited their opportunity to confront potential conflicts” involving the president’s personal crypto holdings.
House negotiators have already indicated they may revise the Senate language. The Conference of State Bank Supervisors urged changes to “mitigate financial-stability risks” and clarify state authority over non-insured firms providing custody or transmission services.
If both chambers reconcile differences in the coming weeks, the GENIUS Act would mark the most significant piece of U.S. crypto legislation to date—setting guardrails for an estimated US$150 billion stablecoin market and potentially shaping global standards for digital-asset payments.
With input from Al Jazeera
