The U.S. Senate has officially approved the GENIUS Act (Governing and Enabling National Innovations for United States Stablecoins), marking a historic step toward creating a federal regulatory framework for stablecoins. This legislative milestone aims to integrate dollar-backed digital assets into the mainstream financial system and strengthen the U.S.’s leadership in digital finance.

A Blueprint for a Safer, Regulated Stablecoin Market

The GENIUS Act outlines:

🔹 Mandatory reserves in cash or U.S. Treasury securities

🔹 Strict AML/CFT compliance standards

🔹 Regulatory oversight by the Federal Reserve

If the bill passes in the House of Representatives and is signed by President Trump, it will become the first comprehensive legal framework for stablecoins in the United States.

From Rejection to Approval: Bipartisan Support Emerges

Just one week ago, the bill’s future looked grim. All 49 Senate Democrats had blocked a procedural vote, temporarily halting progress. But after negotiations and revisions, the proposal returned — and this time it secured over 60 votes, with support from both parties.

Among the Democrats who reversed their stance and voted in favor were:

🔹 Ruben Gallego (Arizona)

🔹 Mark Warner (Virginia)

🔹 Lisa Blunt Rochester (Pennsylvania)

🔹 Kirsten Gillibrand (New York)

🔹 Angela Alsobrooks (Maryland)

Gillibrand and Alsobrooks had co-sponsored the bill earlier.

Trump’s Influence: A Cause for Both Hope and Concern

The GENIUS Act was introduced by Republican Senator Bill Hagerty (Tennessee), with bipartisan support from senators including Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY). They describe it as a “pro-growth, pro-innovation” bill that will strengthen trust in stablecoins and protect consumers.

However, not everyone is convinced. Senator Elizabeth Warren warned the legislation could benefit President Trump’s personal interests, particularly his USD1 stablecoin project and affiliated meme coins. She expressed concern that the bill allows Trump to regulate his own digital currency.

Experts: Clear Rules Are Essential

Despite political debate, industry leaders welcomed the GENIUS Act:

🔹 Bo Hines, from the Presidential Council on Digital Assets, endorsed the bill.

🔹 Justin Slaughter (Paradigm) called it “the best we could hope for in years.”

🔹 Amanda Tuminelli (DeFi Education Fund) said clear rules would benefit consumers, small businesses, and the global role of the U.S. dollar.

🔹 Ji Kim from the Crypto Council for Innovation described it as a critical step toward regulatory clarity, vital for the U.S. to maintain leadership in crypto innovation.

What’s Next?

The bill now moves to the House of Representatives. If it passes and is signed into law by President Trump, it will establish a secure, transparent, and federally regulated environment for stablecoin issuance and use — under the direct supervision of the U.S. central bank.


#Stablecoins , #Regulation , #Cryptolaw , #CryptoInnovation , #DigitalAssets

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