The U.S. Senate passed the GENIUS Stablecoin Act with a vote of 68 to 30. Will Bitcoin reach new highs?

In June 2025, the U.S. Senate passed the "Guidance and Establishment of the U.S. Stablecoin National Innovation Act" (GENIUS Act) by a vote of 68 to 30, marking a significant political battle that lasted six weeks. The core goal of the bill is to promote the compliance and mainstream adoption of stablecoins, requiring payment stablecoins to be fully backed 1:1 by highly liquid assets, and prohibits tech giants and individual leaders from directly issuing stablecoins. This provision was seen as targeting the USD1 stablecoin issued by a company owned by the Trump family in March, and it also quelled Democratic accusations of "crypto corruption." The process of passing the bill was tortuous; it stalled at 48:49 when the Democrats questioned the ties between the Trump administration and the crypto industry during the debate in early May. However, both parties reached a compromise on provisions related to "anti-money laundering compliance" and "consumer bankruptcy protection," resulting in a revised bill that gained support from 16 Democratic lawmakers, highlighting the bipartisan consensus on crypto issues. Tennessee Senator Bill Hagerty called the bill a cornerstone for the U.S. to regain leadership in financial technology, while Treasury Secretary Scott Bentsen predicted it would push the stablecoin market size to exceed $3.7 trillion.

This marks a historic step in stablecoin regulation, requiring payment stablecoins to be backed by highly liquid assets and prohibiting individuals and tech giants from issuing stablecoins. This reinforces the dollar's hegemony and boosts demand for U.S. debt, but it may suppress innovation. Meanwhile, the Bitcoin market is experiencing fluctuations due to macro factors and profit-taking; short-term support remains strong, and long-term investors remain optimistic, expecting prices to rebound to $130,000.

Looking at the current market situation, if it can stabilize and not fall below $100,000, there is a chance to continue aiming for new highs; a drop below that could trigger a deeper decline. Personal trading advice still primarily favors short positions, and if the stablecoin bill proceeds smoothly, it will take a few more months. This is indeed positive for the future; the more it declines now, the greater the potential gains for us when we bottom-fish later.