#GENIUSActPass A milestone for stablecoins in the U.S.

On June 18, 2025, the United States Senate passed the GENIUSA Act with a bipartisan vote of 68-30, marking a milestone in the regulation of stablecoins. This legislation establishes the first comprehensive federal framework to regulate stablecoins like USDC and USDT, requiring issuers to maintain 1:1 reserves backed by U.S. dollars or high-quality liquid assets, such as short-term Treasury bonds.

Additionally, issuers must disclose the composition of their reserves monthly and undergo annual audits for those with a capitalization exceeding $50 billion. The law prohibits stablecoins that generate yields and restricts large tech companies from issuing them, while foreign issuers, like Tether, face strict compliance requirements to operate in the U.S. The GENIUSA Act aims to strengthen the dollar's dominance in the digital realm, promote institutional adoption, and reduce systemic risks, positioning the U.S. as a leader in crypto asset regulation compared to frameworks like MiCA in the European Union.