U.S. Senate Passes Stablecoin Framework: A Landmark Moment for Crypto Regulation
In a significant development for the cryptocurrency industry, the U.S. Senate has officially passed a comprehensive stablecoin framework, marking a pivotal shift in how digital assets are regulated in the United States. The bill, known as the GENIUS Act (Guidelines for Electronic Neutral Issuance and Uniform Stability), is set to create a uniform federal standard for the issuance, reserve backing, and risk management of USD-pegged stablecoins.
The newly passed legislation provides a clear regulatory path for stablecoin issuers and aims to:
Ensure full backing of stablecoins with liquid U.S. dollar assets.
Require monthly audits and public reserve disclosures.
Introduce licensing requirements through federal agencies (likely the U.S. Treasury or OCC).
Enhance consumer protections against fraud, insolvency, and mismanagement.
The bill now heads to the House of Representatives for final approval. If passed there (as expected), it will be signed into law and rolled out over the next 12 months.
The Federal Reserve and U.S. Treasury are expected to publish specific guidelines and timelines by Q4 2025.