the U.S. Senate has advanced the GENIUS Act, a landmark bill aimed at establishing a comprehensive federal framework for regulating stablecoins. The bill, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, was introduced on February 4, 2025, and has since garnered significant attention due to its potential to reshape the digital currency landscape in the United States.businessinsider.com+13chainalysis.com+13timesofindia.indiatimes.com+13cryptorank.io+3congress.gov+3cointelegraph.com+3
đď¸ Legislative Progress
Senate Cloture Vote: On May 19, 2025, the Senate invoked cloture on the GENIUS Act with a 66â32 vote, overcoming a filibuster and paving the way for full debate and a potential vote on the Senate floor. cointelegraph.com+4bovill-newgate.com+4cryptorank.io+4
Bipartisan Support: The bill has received backing from both Republican and Democratic senators, including co-sponsors such as Sen. Bill Hagerty (R-TN), Sen. Kirsten Gillibrand (D-NY), and Sen. Cynthia Lummis (R-WY). chainalysis.com
đĄ Key Provisions of the GENIUS Act
Stablecoin Issuer Requirements: The bill mandates that stablecoin issuers hold full reserves and comply with anti-money laundering (AML) regulations under the Bank Secrecy Act. ainvest.com
Regulatory Oversight: It establishes a framework for federal oversight, aiming to ensure consumer protection and financial stability within the stablecoin market. timesofindia.indiatimes.com
Exclusion of Algorithmic Stablecoins: The GENIUS Act specifically restricts the issuance of algorithmic stablecoins, focusing on asset-backed models. chainalysis.com+9economicliberties.us+9bovill-newgate.com+9
â ď¸ Controversies and Criticisms
Conflict of Interest Concerns: Critics, including Sen. Elizabeth Warren (D-MA), have raised concerns that the bill could disproportionately benefit entities associated with former President Donald Trump, such as his crypto venture World Liberty Financial. businessinsider.com+2cointelegraph.com+2cbsnews.com+2
Lack of Safeguards: Some lawmakers argue that the GENIUS Act lacks sufficient consumer protection measures and could lead to increased influence of Big Tech in the financial sector. banking.senate.gov+6economicliberties.us+6cointelegraph.com+6
đ Market Impact
Cryptocurrency Market Reaction: Following the Senate's advancement of the GENIUS Act, major cryptocurrencies, including Bitcoin and XRP, experienced price increases, signaling positive market sentiment toward the bill's progress. barrons.com+1cointelegraph.com+1
đŽ Looking Ahead
The GENIUS Act is poised to play a pivotal role in shaping the future of digital currencies in the United States. As the bill moves through the legislative process, stakeholders across the financial and tech sectors are closely monitoring its developments. The outcome of this legislation could set a significant precedent for how digital currencies are regulated and integrated into the broader financial system.
