The United States Senate achieved a historic milestone on June 17, 2025, by passing the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) with overwhelming bipartisan support. The landmark legislation, which passed by a vote of 68-30, establishes the first comprehensive regulatory framework for stablecoins in American financial history.
A Long-Awaited Victory for Digital Assets
This legislative victory represents the culmination of years of advocacy by the cryptocurrency industry, which invested approximately $250 million in the 2024 election cycle to support pro-crypto candidates. The bill's passage marks the first time the Senate has approved major legislation specifically designed to regulate digital assets, setting a precedent for future cryptocurrency regulation.
The path to passage was not without obstacles. Earlier attempts to advance the legislation faced setbacks, including a failed procedural vote in May where the bill fell short of the required 60 votes. However, persistent bipartisan negotiations and revisions to address concerns from both parties ultimately led to the successful vote.
Key Provisions of the GENIUS Act
The legislation establishes a comprehensive framework that addresses several critical aspects of stablecoin regulation. Under the new law, only permitted issuers will be authorized to issue payment stablecoins, which are digital assets that issuers must redeem for a fixed value, typically pegged to the U.S. dollar.
One of the most significant provisions requires stablecoin issuers to back their tokens with U.S. Treasury bonds, reinforcing the dollar's dominance in the global financial system. This requirement aims to ensure stability and reduce the risk of runs on stablecoin reserves.
The act also includes important transparency measures, requiring members of Congress and senior executive branch officials to disclose stablecoin holdings over $5,000.
