U.S. Senate Passes Landmark Stablecoin Bill, Paving Way for Crypto Regulation

In a historic move, the U.S. Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 (GENIUS) Act with strong bipartisan support, voting 68-30. The legislation, which now advances to the House of Representatives, marks a significant milestone in U.S. crypto policy by setting federal standards for stablecoin issuance and oversight.

The GENIUS Act introduces strict regulatory requirements for stablecoin issuers like Circle, Ripple, and Tether. These include one-to-one backing with U.S. dollars or short-term Treasuries, stringent reserve management, enhanced transparency, anti-money laundering compliance, and new capital requirements. If adopted by the House without changes, it could swiftly reach President Donald Trump for final approval.

Supporters say the bill is a major step toward legitimizing digital asset markets in the U.S. “This is a win for innovation,” said Amanda Tuminelli of the DeFi Education Fund. However, critics like Senator Elizabeth Warren argue the bill leaves room for foreign stablecoin dominance and corporate-issued tokens, while raising ethical concerns over President Trump’s personal crypto ties.

Senator Bill Hagerty, the bill’s sponsor, emphasized that stablecoin regulation boosts global confidence in U.S.-backed digital assets. The GENIUS Act is also closely linked to the House’s Digital Asset Market Clarity Act, which aims to define the legal framework for broader crypto markets.

A report by TRM Labs revealed that stablecoins now power over 60% of crypto transactions, with USDT and USDC leading the market. Despite this, concerns over their use in illicit finance remain a key issue among lawmakers.

With both bills gaining momentum, the U.S. edges closer to becoming a global leader in crypto regulation.