#GENIUSActPass Yesterday the Senate passed the GENIUS Act, the first stablecoin legislation to be approved by either Congressional chamber after several years of trying. The vote of 68 to 30 was the same count as the procedural vote last week. Eighteen Democrats voted in favor on both occasions, but previous supporter Mark Kelly abstained, while Jon Ossoff backed the bill this time around.
In order to become law, both chambers will have to vote in favor, with the House having a separate STABLE Act bill with quite a few differences, as explored earlier this month. However, this is a major legislative breakthrough, as it’s the first major digital asset legislation approved by the Senate.
Assuming that the chambers manage to reconcile the versions, the passage of legislation will provide greater regulatory certainty, a boon for the stablecoin sector. This momentum has already energized markets. That’s illustrated by the runaway success of the stablecoin issuer Circle’s IPO, with its price hovering around $150 after issuing at $31 a couple of weeks ago. Since then, unconfirmed reports suggest several organizations are exploring issuing their own, including Amazon, Walmart and the DTCC, while other major firms such as Apple, X, Airbnb and Google are considering using them.
Given around 97% of stablecoins are denominated in US dollars (followed by gold), the move is seen as reinforcing the position of the dollar.
“Today the Senate took a critical step toward securing U.S. Dollar dominance by passing the bipartisan GENIUS Act,” said Senator Lummis. “The success of the GENIUS Act hinges on comprehensive market structure legislation that protects consumers, establishes transparency, and creates clearly defined trading regulations. Congress must act quickly.” Apart from stablecoin legislation, market infrastructure laws will govern regulated crypto exchanges, custodians and token issuance (other than stablecoins).
One possible fly in the ointment could come if the House decides to merge its stablecoin legislation (STABLE Act)
