The US Senate has passed the GENIUS Act, marking the first major federal legislation to regulate stablecoins, a rapidly growing segment of the cryptocurrency market.
The bill was approved with a strong bipartisan vote of 68 to 30, signaling broad support for establishing a regulatory framework tailored to dollar-backed digital tokens used for payments across blockchain networks.
The U.S. Senate has passed the GENIUS Act — landmark stablecoin legislation that provides regulatory clarity, enhances consumer protection, and extends U.S. dollar dominance online. Thanks to President Trump for his leadership on crypto & @SenatorHagerty for authoring the bill.
— David Sacks (@davidsacks47) June 17, 2025
Sponsored by Senator Bill Hagerty of Tennessee, the GENIUS Act—short for “Guaranteeing Essential National Infrastructure Using Stablecoins”—aims to modernize the US payment system by enabling faster and cheaper transactions. Key provisions require stablecoin issuers to fully back their tokens with liquid assets such as US dollars or Treasury bills and to disclose these reserves publicly on a monthly basis. The bill also restricts issuance to licensed financial institutions and prohibits federal officials from launching their own stablecoins to prevent conflicts of interest.
The legislative journey was challenging. Initial concerns from Democrats about national security risks, ethics loopholes, and foreign influence delayed progress. Revelations about an Abu Dhabi firm’s planned investment in Binance via stablecoins linked to a Trump-associated company intensified scrutiny. After weeks of negotiations, amendments were added to strengthen ethics disclosures for officials holding stablecoins, enhance bankruptcy protections for bank customers, and require Treasury oversight of suspicious activities. These changes helped secure enough Democratic support to pass the bill.
Despite the bipartisan success, some critics remain sceptical. Senator Elizabeth Warren criticised the bill as favouring industry interests and insufficiently protecting consumers. Conversely, supporters like Senator Kirsten Gillibrand emphasise the necessity of regulatory clarity to protect consumers and bring order to what she described as a “wild West” market. Industry experts view the Senate’s approval as a pivotal step toward robust consumer protections and market integrity in the digital asset space.
The bill now moves to the House of Representatives, where similar legislation is under consideration. The final version may undergo further changes before reaching the president’s desk, expected before the August congressional recess. This legislation represents a significant milestone in the US effort to regulate and legitimise stablecoins within the broader crypto ecosystem.
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