On June 18, 2025, according to (Politico), the U.S. Senate overwhelmingly passed the landmark (Guidance and Establishment of the U.S. Stablecoin National Innovation Act) (GENIUS Act) with 68 votes in favor and 30 votes against. This bill, led by Republican Senator Bill Hagerty from Tennessee, is the first comprehensive regulatory reform attempt for cryptocurrencies in the U.S., aimed at creating a clear federal regulatory framework for dollar stablecoins.
In the rare cooperation of both parties, alongside sharp accusations against the Trump family's interests, the passage of this bill not only signals the arrival of a new era of compliance for the stablecoin market but is also seen as a key step for the U.S. to dominate global digital asset rules and extend the digital hegemony of the dollar.
Navigating through compromise and accusations: The birth of a bill.
The journey of the (GENIUS Act) is a script filled with political games and key compromises.
On February 4 of this year, Representative Hagerty, along with bipartisan colleagues, formally introduced the bill, with a clear core demand: requiring stablecoin issuers to hold high-liquidity assets (such as dollars or short-term government bonds) at a 1:1 ratio as reserves, and to comply with strict anti-money laundering (AML) and consumer protection standards to fill the regulatory vacuum.
On March 13, the bill passed the Senate Banking Committee with an 18:6 vote, with five Democratic senators switching sides to support it, revealing a newfound bipartisan consensus on stablecoin issues. However, the real storm center focused on the cryptocurrency project World Liberty Financial (WLFI) and its USD1 stablecoin, owned by former President Trump's family.
On May 8, the bill faced procedural setbacks in the Senate. The opposition, represented by Senator Elizabeth Warren, sharply criticized the bill, arguing that it would provide a 'legal façade' for the rapid expansion of WLFI, potentially fostering 'corruption' and opening a backdoor to evade international sanctions.
To break the deadlock, the bill underwent several key revisions in May: stricter anti-money laundering provisions were added, an independent 'Stablecoin Certification Review Committee' was established, and clear restrictions were placed on technology giants (Big Tech) regarding their involvement in stablecoin issuance. These adjustments, aimed at 'clearing the mines,' ultimately won the support of centrists, paving the way for the final vote on June 17. On that day, as many as 18 Democratic senators stood together with Republicans to send the bill out of the Senate. Hagerty asserted before the vote, 'This bill will modernize the U.S. payment system and bring the U.S. one step closer to becoming a global cryptocurrency leader.'
"The Digital Future of the Dollar": The grand narrative of the Treasury and new demand for U.S. debt.
Regarding the bill's passage, Treasury Secretary Scott Bessent's public support revealed deeper national strategic intentions behind it.
Bessent pointed out on social media that the stablecoin market is expected to grow to an astonishing $3.7 trillion by 2030. He believes that the passing of the (GENIUS Act) will systematically promote the 'Treasury bondization' of stablecoin reserves. A massive stablecoin ecosystem fully backed by U.S. Treasury bonds will not only greatly consolidate the dollar's position as the global reserve currency but will also create a new, massive demand pool for U.S. Treasury bonds originating from the private sector, effectively lowering government borrowing costs and aiding in controlling the ever-growing national debt.
This is a clever 'win-win' design: stablecoins receive the compliance endorsement and credit backing of the state, while the U.S. Treasury gains a stable and growing source of funds. Given that the global stablecoin market exceeds $250 billion, with monthly trading volumes reaching $700 billion, the strategic value of this arrangement is self-evident.
Capital votes with its feet: industry cheers and global regulatory synergy
Legislative breakthroughs quickly transmitted to the market. Circle CEO Jeremy Allaire praised the bill as providing a 'safe harbor for stablecoin innovation' and predicted that it would solidify the dollar stablecoin's dominant position in global payments. Tether CEO Paolo Ardoino also believes that clear regulation will attract more institutional capital.
The capital market gave the most direct response: the day after the bill's passage, shares of Circle's parent company surged 168.5% on their first day of trading, and related stocks generally rose, significantly boosting market confidence.
Looking globally, the U.S. legislative process has formed regulatory synergy with major economies. The EU's MiCA regulation has been fully implemented, and Hong Kong has also passed the (Stablecoin Regulation Bill). The gradual formation of a global regulatory framework heralds the end of the era of reckless growth for stablecoins.
Trump's 'shadow': An inescapable controversy.
Despite the bill's successful passage, the controversies surrounding it have not dissipated. The Trump family's USD1 stablecoin has surged from $128 million at the end of April to an astounding growth of over $2 billion, remaining a focal point of attack for the opposition.
Senator Warren warned that the bill fails to effectively address potential conflicts of interest. The consumer advocacy organization Public Citizen was even more vehement, stating that the bill paves the way for 'the largest corruption in presidential history.' This 'shadow' will undoubtedly continue to accompany the bill into the next phase of deliberation.
Conclusion: The watershed has arrived, but the outcome remains uncertain.
(GENIUS Act) passing in the Senate marks a watershed moment in the history of U.S. cryptocurrency regulation, but it is far from the final chapter. It clearly presents a complex picture: on one side is a bipartisan national strategic consensus aimed at maintaining dollar hegemony and financial innovation; on the other side is a partisan defensive rooted in realpolitik, full of fierce interest entanglements.
Next, the bill will face scrutiny in the House of Representatives and await the president's final signature. Disagreements still exist between the two chambers, and debates surrounding Trump's conflicts of interest are sure to re-emerge. The final fate of this bill will not only define the digital asset rules of the world's largest economy but will also reveal whether a traditional financial empire ultimately chooses to embrace, assimilate, or tame the wave of decentralization. The game has begun, but who will laugh last remains uncertain.
