#GENIUSActPass On June 17, 2025, the U.S. Senate passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), a landmark bipartisan bill aimed at establishing the first federal regulatory framework for stablecoins—digital tokens pegged to assets like the U.S. dollar. Securing a 68–30 vote, the legislation now moves to the House of Representatives ahead of a potential presidential signature before Congress’s August recess .
Key Provisions:
1:1 Reserves: Issuers must hold liquid assets (cash or U.S. Treasuries) equivalent to the stablecoins in circulation .
Transparency & Audits: Monthly reserve disclosures and annual independent audits for major issuers with over $50 billion in tokens .
AML & Sanctions Compliance: Stablecoin services must adhere to anti-money laundering and sanctions regulations.
Ban on Insider Issuance: Lawmakers, executive officials, and foreign or nonfinancial entities are restricted from issuing stablecoins to avoid conflicts of interest .
Political Tensions:
The bill garnered support from 18 Democrats who favored guardrails over inaction, while critics like Senator Elizabeth Warren warned the Act lacks sufficient safeguards, particularly concerning large tech companies and potential conflicts tied to former President Trump’s involvement in crypto . Trump’s family holds a significant stake in World Liberty Financial, which issued its own stablecoin USD1—raising conflict-of-interest concerns. However, the Act includes clauses preventing congressional families, though not the President’s, from profiting from stablecoin ventures .
Industry Impact:
Crypto industry leaders, including Circle, Coinbase, Visa, and Mastercard, have welcomed the Act. They believe it will bring much-needed legitimacy to the stablecoin sector, unlock faster payments, and help anchor the U.S. as a leader in digital finance .
What Comes Next:
Senate approval secured the GENIUS Act now awaits action in the House where it may either pass as is / be redirected toward the companion
