#GENIUSActPass

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) just passed the U.S. Senate on June 17, 2025, by a 68–30 bipartisan vote.

This Senate approval is the first-ever major crypto‑focused legislation to clear that chamber—and it now heads to the House.

🏛️ Key Provisions

Establishes a federal regulatory framework for stablecoins (dollar-pegged cryptocurrencies).

Mandates 1:1 reserves in cash or Treasuries and monthly audited disclosures for large issuers (over $50 billion).

Requires issuers to comply with anti‑money laundering rules and undergo regulatory oversight similar to banks .

Bars lawmakers and executive officials from issuing stablecoins to prevent conflicts of interest.

Tightens rules around foreign and non-financial issuers, partly targeting firms like Tether .

✍️ Political Dynamics

Bipartisan support: 18 Democrats joined Republicans in backing the bill.

Critics include Senator Elizabeth Warren, who argues it lacks strong enough safeguards.

🛣️ What’s Next?

Moves to the Republican-controlled House, where a companion STABLE Act is under discussion.

House legislators may push for stricter consumer protections or merge it with broader rules (e.g., market‑structure reforms under a “CLARITY Act”).

If passed by both chambers, it's expected to be signed by President Trump before the August congressional recess.

🌐 Industry Impact

Market reaction: U.S.-based issuers like Circle (USDC) stand to benefit, while foreign stablecoins like Tether (USDT) face new constraints.

Corporate interest: Big firms—Visa, Mastercard, Amazon, Walmart—had been exploring stablecoin options, and the legislation provides needed clarity.

Global implications: Seen as a strategic move to reaffirm the dollar's dominance in the digital asset space.