#GENIUSActPass The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act has passed the U.S. Senate on June 17, 2025, by a 68-30 vote. This marks a significant step towards federal regulation of stablecoins in the United States.

What is the GENIUS Act?

The GENIUS Act is a bipartisan piece of legislation aimed at creating a comprehensive regulatory framework for payment stablecoins. Stablecoins are a type of cryptocurrency designed to maintain a stable value, typically by being pegged to a fiat currency like the U.S. dollar, or to other assets like gold or government bonds.

The primary goals of the GENIUS Act include:

* Establishing a Federal Framework: It seeks to create clear rules for the issuance and oversight of stablecoins, aiming to bring clarity to an industry that has largely operated in a regulatory grey area.

* Consumer Protection: The bill includes provisions for consumer protection, such as requiring stablecoin issuers to hold 1:1 reserves, face regular audits, and ensure stablecoin owners have a higher priority in the event of a custodian's or issuer's bankruptcy.

* National Security and Anti-Money Laundering (AML): It aims to strengthen national security by implementing AML and anti-terrorism procedures for stablecoin issuers and addressing concerns about illicit use.

* Fostering Innovation: Proponents argue that by providing regulatory certainty, the act will encourage innovation in the digital asset space and modernize payment systems, potentially leading to faster and cheaper transactions.

* Strengthening U.S. Dollar Dominance: By regulating dollar-pegged stablecoins, the act is also seen as a way to reinforce the U.S. dollar's role as the world's reserve currency in the digital economy.