'It's a triple victory: for the private sector, for the Treasury, and for consumers.'

U.S. Treasury Secretary Scott Bessent stated on Tuesday afternoon (17th) in a post on X that the stablecoin market could reach $3.7 trillion by the end of the decade — a scenario that would become more likely with the approval of the GENIUS Act. On Tuesday night, the bill was approved by 68 votes in favor and 30 against in the U.S. Senate.

According to Bessent, a robust ecosystem of stablecoins would increase private sector demand for U.S. Treasury securities, which typically back these digital currencies. This could reduce the government's financing costs and help manage public debt.

Additionally, millions of people worldwide would be integrated into the dollar-based digital economy. 'It's a triple victory: for the private sector, for the Treasury, and for consumers,' Bessent wrote in a post on the X network before the Senate approval, classifying the advancement as the result of smart and pro-innovation legislation.

Lawmakers of the GENIUS Act.

Republican Senator Bill Hagerty, the bill's author, stated on the Senate floor before the vote that the legislation will have 'far-reaching implications' for the financial system — a 'paradigm-shifting development' that will bring the sector into the 21st century. 'With this bill, the United States is one step closer to becoming a global leader in crypto,' Hagerty said, according to Fortune.

Democratic Senator Angela Alsobrooks, co-author of the GENIUS Act, acknowledged that she was unable to include everything she wanted in the text but said it was 'a good bipartisan effort.' 'This is an unregulated area that will now become regulated,' she concluded.

Experts react.

'The approval of the Genius Act by the U.S. Senate was highly anticipated. It faced a setback along the way, but as expected, it was approved. This law basically establishes what a stablecoin is and creates clear rules for the growth of this industry, which will start to advance significantly, not only in the United States but around the world, especially because it has legislation approved in the largest financial center in the world,' commented Brazilian expert André Franco, CEO of Boost Research.

'A truly historic moment,' said Ripple CEO Brad Garlinghouse in a post on X. 'FOR YEARS, crypto companies have been pushing Congress to pass cryptocurrency laws and establish rules of conduct. This is the first major financial bill since the Dodd-Frank Act [which regulated the U.S. financial market in 2010], the first cryptocurrency bill passed in the Senate, which now goes to the House.'

What happens now?

Now it will be the turn of U.S. House representatives to analyze the text to vote on it in its current form or propose changes — which would require another round in the Senate before the bill is sent for Donald Trump's signature.

However, this vote may not come soon. While Senate Republicans are pushing for the GENIUS Act to be signed by July 4th, their colleagues in the House have their own stablecoin bill and may want to combine it with the broader and weakened bill on the crypto market framework, in an attempt to increase the chances of combined legislation being approved in both houses.

What does the GENIUS Act determine?

'GENIUS' stands for Guiding and Establishing National Innovation for U.S. Stablecoins; loosely translated, 'Guide for Establishing National Innovation in Stablecoin Infrastructure.' The GENIUS Act establishes guidelines for the approval and oversight of stablecoin issuers — tokens pegged to the dollar — in the United States, such as Tether, Circle, and Ripple.

Companies operating with stablecoins in the U.S. market will be required to meet stricter requirements regarding the composition of their reserves, comply with transparency requirements, and adhere to anti-money laundering laws — all under the supervision of a regulatory body.

To comply, Tether, which today controls the largest stablecoin in the world, USDT, stated in May that it plans to launch a new stablecoin pegged to the US dollar by the end of the year to avoid legal issues.

The GENIUS Act advanced in the Senate, although a topic concerning Democrats remained unaddressed: the personal financial interest of the US president in the cryptocurrency sector.

There is a provision in the bill that prohibits members of Congress and their families from profiting from stablecoins, but it does not extend to the president and his family.

It is worth noting that Trump and his family hold a substantial stake in World Liberty Financial, a crypto project focused on DeFi that has its own stablecoin, USD1.

This week, Trump revealed that he made a profit of $57.3 million with World Liberty Financial — a gain that led lawmakers to classify the situation as 'open corruption.'