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Senate Approves the GENIUS Act, Bringing US Stablecoin Rules Closer to Reality

The US Senate has taken a step closer to enacting legislation by approving the GENIUS Act, which aims to establish a regulatory framework for stablecoins.

In a vote of 68-30 on Tuesday, senators approved a modified version of the bill. The Generating National Innovation to Unlock and Sustain (GENIUS) Act for US Stablecoins was introduced by Senator Bill Hagerty (R-TN) in April. The bill is now headed to the House of Representatives, where it may face further amendments and a tougher political battle.

Before the vote, Hagerty stated in a speech on the Senate floor, "With this bill, the United States has taken a step closer to being a global leader in crypto." He added, "Businesses of all sizes and Americans across the country will be able to settle payments almost instantly instead of waiting days or even weeks."

There are concerns about the increasing influence of former President Donald Trump in the crypto space. Trump and his family have close ties to World Liberty Financial, the publisher of a USD-backed token called USD1 that was launched in March.

Treasury Secretary Scott Bessent wrote on X, "Recent reports predict that stablecoins could become a $3.7 trillion market by the end of the decade. This scenario becomes more likely with the passage of the GENIUS Act."

Meanwhile, lawmakers in the House of Representatives are evaluating the CLARITY Act, a broader effort to define market structure rules for digital assets. Versions of the bill have already passed both the House Agriculture and Financial Services Committees and may face a full vote later this month.