The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is a groundbreaking bipartisan bill approved by the U.S. Senate on June 17, 2025, with a 68–30 vote . Here's an enhanced breakdown:
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🧠 What the GENIUS Act Does
Regulates stablecoins—digital currencies pegged to assets like the U.S. dollar—by mandating reserve backing in secure, liquid assets (e.g., U.S. Treasuries) .
Creates a federal oversight framework, enabling banks to issue stablecoins and prescribing clear roles for federal banking agencies .
Introduces consumer protections (e.g., depositors’ rights, transparent disclosures) and anti-corruption measures, including prohibiting members of Congress and executive officials from profiting from stablecoins—though notably, the restrictions do not apply to the President or their family .
Includes national security provisions, such as protections regarding foreign stablecoin issuers .
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Legislative Journey & Political Context
Earlier versions failed to clear the Senate (May 2025) due to concerns over Trump-linked crypto deals and insufficient AML transparency .
Revised language addressed those issues, gaining support from 18 Democrats and the Republican majority .
Passed unanimously through the Senate Banking Committee, spearheaded by Chair Tim Scott with backing from both parties .
Opposed by some Democrats (e.g., Elizabeth Warren, Jeff Merkley) and Republicans (Rand Paul, Josh Hawley) over anti-corruption and transparency loopholes .
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What Happens Next
Now heading to the U.S. House, where lawmakers are considering a companion bill (STABLE Act) and broader crypto-market regulations such as the CLARITY Act .
If the House approves and the President signs, this would become the first federal law regulating stablecoins—a milestone for digital asset oversight .
Proponents, including Treasury Secretary Bessent and Coinbase CEO Armstrong, highlight its potential to foster faster payments, consumer confidence, and global leadership .
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