As of May 21, 2025, the *GENIUS Act* (Guiding and Establishing National Innovation for U.S. Stablecoins $USDC ) has made significant strides in the U.S. legislative process. On May 19, the Senate advanced the bill with a 66-32 vote, marking a pivotal step toward establishing a federal regulatory framework for stablecoins. [1]

The GENIUS Act aims to regulate stablecoins—cryptocurrencies pegged to assets like the U.S. dollar—by requiring issuers to maintain 1:1 backing with liquid assets such as cash or U.S. Treasuries. It also mandates compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations, and introduces measures to enhance consumer protection and financial stability. [2]

Despite its progress, the bill has faced challenges. Earlier in May, nine Senate Democrats expressed concerns over issues including AML enforcement, foreign issuer limitations, and national security protections. These concerns led to a temporary stall in the bill's advancement. [3] However, subsequent bipartisan negotiations addressed key sticking points, allowing the bill to move forward. [1]

The GENIUS Act's advancement reflects the U.S. government's growing interest in integrating cryptocurrencies into mainstream financial oversight. If enacted, it would be the first comprehensive federal law to regulate stablecoins, potentially setting a precedent for future legislation in the digital asset space. [1]

The bill now awaits further consideration in the House of Representatives. Its outcome could have far-reaching implications for the broader crypto industry, influencing how digital currencies are governed in the U.S. and potentially shaping regulatory approaches in other countries. [4]