On June 17, Eastern Time, the U.S. Senate passed the "Stablecoin Regulatory Framework Act" (GENIUS Act) with 68 votes in favor and 30 against, establishing a regulatory system for cryptocurrencies pegged to the U.S. dollar. This landmark legislation marks the first time the digital asset industry has received federal legal regulation.

This bipartisan-supported bill was pushed primarily by Republican lawmakers, with several Democratic representatives choosing to support it across party lines.

The official name of the bill is the "Guidance and Establishment of a National Innovation for U.S. Stablecoins Act" (GENIUS), and it will next be submitted for a vote in the House of Representatives, after which it can be sent to President Trump for signing.

"This is a significant turning point for the development of the cryptocurrency industry," noted Andrew Olmem, former Deputy Director of the White House National Economic Council and partner at the law firm Akin Gump. "This bill establishes a regulatory framework for the rapidly growing digital financial product – stablecoins – filling a legal void that has persisted for over a decade."

Analysts suggest that this voting outcome is the most tangible return for the cryptocurrency industry after investing hundreds of millions of dollars to elect a "crypto-friendly" Congress. The cryptocurrency giants that heavily invested in last year's elections have already laid out similar plans for the midterm elections in 2026.

Supporters, including U.S. President Trump and Treasury Secretary Mnuchin, strongly advocate for stablecoins pegged to the dollar, stating that they could potentially increase global demand for the dollar and U.S. bonds.

The legislation requires that stablecoins pegged to the dollar hold short-term government bonds or similar products regulated by state or federal authorities on a one-to-one basis.

Senate Banking Committee Chairman and South Carolina Republican Tim Scott stated in a statement on Tuesday that this legislation "brings clarity to an industry that has long been shrouded in uncertainty."

According to the provisions of the bill, stablecoins pegged to the dollar must hold an equivalent amount of short-term government debt or similar products as reserves and are subject to oversight by U.S. state or federal regulators. Notably, these stablecoins will not be protected by federal deposit insurance.