According to latest reports, the US Senate has passed the GENIUS Act stablecoin regulation bill with strong bipartisan support. The legislation, officially titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, passed 68–30; the first time a major crypto bill has ever done so.
- After Years of Gridlock, Senate Puts Stablecoin Oversight in the Spotlight
- What the GENIUS Act Means for Stablecoin Issuers
- Criticism and Open Questions: Not Everyone Is on Board
- Conclusion: House Consideration and Market Reform
- FAQs
- What is the GENIUS Act?
- What does the bill require from issuers?
- Has a stablecoin bill ever passed Congress before?
- Why is the bill controversial?
- What happens next?
- Glossary
Consequently, it goes to the House of Representatives where its fate is unknown but highly anticipated. If passed, it could be the most comprehensive federal regulation for dollar-pegged stablecoins in the US which supports over 60% of all crypto transactions globally.
“This is a win for the US, a win for innovation and a big step towards appropriate regulation for digital assets in the US,” said Amanda Tuminelli, Executive Director and Chief Legal Officer at the DeFi Education Fund.
After Years of Gridlock, Senate Puts Stablecoin Oversight in the Spotlight
The passage of the GENIUS Act stablecoin regulation is a breakthrough in years of congressional stalemate over digital assets. For the first time, a crypto bill has gotten support from both Republicans and a large chunk of Democrats, despite opposition from Senator Elizabeth Warren who criticized the bill’s treatment of foreign stablecoin issuers like Tether and its loopholes for tech giants.
“This bill ensures stablecoins will be pegged to the US dollar and backed one-to-one by cash and short-term US Treasuries,” said Senator Bill Hagerty, the Tennessee Republican who sponsored the bill. “This gives certainty and confidence for wider adoption of this technology.”
The bill proposes clear regulatory guardrails for stablecoin issuers in the US, including mandatory licensing, strict reserve requirements, transparency obligations, and AML compliance. It also prevents large non-financial corporations like Amazon or Meta from issuing their own stablecoins unless approved by regulators.
What the GENIUS Act Means for Stablecoin Issuers
If passed, the GENIUS Act would put all stablecoin issuers under the jurisdiction of a federal authority, likely the OCC in coordination with Treasury and other agencies. Issuers would have to maintain 100% reserves in cash or US Treasuries, provide monthly attestation reports and submit to regular audits.
Ji Kim, acting CEO of the Crypto Council for Innovation, said this is a big deal for builders and users. “It’s a big step forward,” he said in a statement after the Senate vote.
Notably, the bill distinguishes between custodial and algorithmic stablecoins. Custodial stablecoins (like USDC or USDT) would be regulated immediately, while the bill calls for further study on algorithmic models before deciding on a regulatory approach.
Criticism and Open Questions: Not Everyone Is on Board
Despite broad bipartisan support, the GENIUS Act is not without its critics. Progressive Democrats argue it doesn’t go far enough to address systemic risks, illicit finance, and corporate issuers. Senator Elizabeth Warren voted against the bill, saying it clears a path for foreign actors and Big Tech to gain outsized influence in the US financial system.
Her concerns were backed up by a recent report from TRM Labs which noted that while 99% of stablecoin activity is legitimate, the remaining 1% is increasingly being used for illicit purposes such as ransomware, fraud and terrorist financing. Critics argue that without broader oversight, this can be exploited.
Conclusion: House Consideration and Market Reform
The GENIUS Act now heads to the House, where its fate is tied to the Digital Asset Market Structure Clarity Act. The bill aims to define tokens, clarify SEC and CFTC jurisdiction, and streamline market oversight.
While the GENIUS Act is first in line, the industry is pushing for both bills to move together. A piecemeal approach could create regulatory chaos. Based on reports, House Financial Services Committee Chair Patrick McHenry will coordinate the effort to merge the bills before summer recess.
If the House makes changes, the bill will go back to the Senate for final reconciliation. This will be a big few weeks for US crypto policy.
FAQs
What is the GENIUS Act?
The GENIUS Act; or Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, is a federal bill to regulate U.S. dollar-backed stablecoins by creating licensing, reserve and compliance requirements.
What does the bill require from issuers?
Issuers must hold 1:1 reserves in cash or US Treasuries, undergo monthly audits, and comply with AML. Unauthorized corporate issuers are banned.
Has a stablecoin bill ever passed Congress before?
No. This is the first time either chamber of Congress has passed a stablecoin-specific bill; a big deal in crypto legislation.
Why is the bill controversial?
Critics say it allows loopholes for foreign stablecoins like USDT; and doesn’t address illicit finance risks or tech companies issuing tokens.
What happens next?
The bill goes to the House of Representatives, where it may be amended or passed as-is. It could also be combined with broader crypto legislation.
Glossary
Stablecoin: digital asset that maintains a fixed value by being pegged to a fiat currency like the US dollar.
GENIUS Act: Legislation to create a federal framework for stablecoin issuance and oversight in the US
OCC (Office of the Comptroller of the Currency): US federal agency that regulates and supervises national banks; and may oversee stablecoin compliance under the bill.
AML (Anti-Money Laundering): Regulations that require financial institutions to prevent; detect and report illegal financial activity.
Sources
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