In a decisive move signaling growing bipartisan support for cryptocurrency regulation, the U.S. Senate on June 17 passed the GENIUS Act—landmark legislation establishing the country’s first comprehensive federal framework for stablecoins. The bill, which cleared the Senate in a 68–30 vote, mandates that all U.S. dollar-backed stablecoins be fully collateralized with liquid assets and subject to regular public disclosures.
The GENIUS Act, formally known as the Guaranteeing Essential National Infrastructure Using Stablecoins Act, would require issuers of stablecoins such as Circle’s USDC and Trump-linked World Liberty Financial’s USD1 to maintain reserves in U.S. dollars or short-term Treasury securities. These companies must also submit monthly audits to demonstrate solvency, transparency, and consumer protection standards.
The bipartisan coalition behind the bill included both Democrats and Republicans, with eighteen Democrats breaking ranks to vote in favor. Supporters argue that the legislation offers much-needed regulatory clarity, enabling innovation while safeguarding financial stability.
“This is the most significant step Congress has taken toward recognizing and regulating digital assets,” said Senator Cynthia Lummis (R-WY), one of the bill’s lead sponsors. “Stablecoins are already playing a role in U.S. financial markets, and this bill ensures they are backed, transparent, and trustworthy.”
Treasury Secretary Scott Bessent voiced support for the bill, calling it a “prudent framework that supports growth while protecting consumers and the financial system.”
The act explicitly bans lawmakers—excluding the president and their immediate family—from holding stablecoin assets to avoid potential conflicts of interest. The clause, introduced in response to mounting scrutiny over former President Donald Trump’s own cryptocurrency ventures, did little to quell criticism from Senate progressives. Senator Elizabeth Warren (D-MA) opposed the measure, warning that the bill fails to implement strong anti-money laundering and financial oversight mechanisms.
Despite the controversy, the bill marks a major milestone for the crypto industry. As stablecoins gain traction among corporate giants like Amazon, Walmart, and global financial institutions including Morgan Stanley and Société Générale, the legislation sets the stage for broader adoption of blockchain-based payment systems.
Industry analysts note the potential macroeconomic impact, particularly if institutional demand for stablecoins increases U.S. Treasury bond purchases, affecting interest rates and market dynamics.
The legislation now heads to the House of Representatives, where lawmakers may either adopt the Senate version or merge it with the more comprehensive CLARITY Act—a broader framework covering the entire digital asset ecosystem.
