Here’s the latest on the GENIUS Act—the U.S. Senate’s stablecoin legislation—based on recent updates
🏛️ Legislative Update
The Senate passed S. 1582(GENIUS Act) on June 18, 2025 in a 68–30 bipartisan vote, establishing the first federal framework for U.S.-dollar–pegged stablecoins.
Led by Senators Hagerty (R‑TN) and Gillibrand (D‑NY),with co-sponsorship from Senators like Tim Scott and Cynthia Lummis.
The bill now moves to the House of Representatives; President Trump has signaled intent to sign it into law before the August congressional recess.
📋 Key Provisions of the GENIUS Act
1. Full Reserve & Asset Standards
Stablecoins must be backed 1:1 with highly liquid assets such as USD, short-term Treasuries, or comparable equivalents.
Reserves must be segregated (no rehypothecation)
2. Transparency &Audits
Monthly reserve disclosures required for all issuers.
Issuers with >$50 billion in circulation must publish annual audited financials.
3. Licensing & Oversight Framework
Creates three regulated issuer categories: bank subsidiaries, federal-qualified nonbanks (OCC), and state-regulated issuers.
Federal review timeline required within 120 days for eligibility.
4. Consumer & Structural Protections
Holders get priority claim on reserves if issuer goes bankrupt.
Anti-money laundering (AML) compliance, plus prohibitions on yield-bearing stablecoins.
Restrictions on issuance by public tech companies without unanimous regulator approval.
Lawmakers & exec branch officials must disclose significant holdings; some previously banned issuance by lawmakers.
5. Non-Securities Clause
Payment stablecoins issued under this framework are explicitly not deemed "securities" under federal law.
🚀 Market & Industry Response
Circle (CRCL)rose ~7% intraday after the vote, trading near ~$200/share—about 6× its $31 IPO price.
Coinbase (COIN) stock jumped ~16–17% on stablecoin regulatory optimism.
Analysts expect mainstream integrations—such as Walmart, Meta, Visa, and Mastercard—to accelerate.
