#GENIUSActPass The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is a landmark U.S. Senate bill passed on June 17, 2025, with a 68–30 vote. It introduces the first federal regulatory framework for stablecoins—cryptocurrencies pegged to the U.S. dollar—aiming to enhance consumer protection and financial stability.
🗳️ Key Provisions
1:1 Reserve Backing: Stablecoins must be fully backed by liquid assets like U.S. dollars or short-term Treasury bills.
Monthly Disclosures & Annual Audits: Issuers must disclose reserve compositions monthly and undergo annual audits if their market capitalization exceeds $50 billion.
wsj.com
+3
businessinsider.com
+3
theblock.co
+3
Anti-Money Laundering Compliance: Issuers are required to adhere to anti-money laundering and know-your-customer regulations.
Ban on Algorithmic Stablecoins: Non-fiat-backed stablecoins are prohibited to prevent market instability.
whitefordlaw.com
Consumer Protections: The bill includes provisions to prevent misleading marketing and ensures holders' claims are prioritized in bankruptcy proceedings.
banking.senate.gov
+1
businessinsider.com
+1
🏛️ Political Context
The GENIUS Act has garnered bipartisan support but faced criticism from some Democrats, including Senator Elizabeth Warren, who expressed concerns about potential conflicts of interest involving former President Trump's investments in the crypto industry.
