U.S. Senate Approves GENIUS Act: A Landmark Step Toward Regulating Crypto Stablecoins

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U.S. Senate Approves GENIUS Act

The U.S. Senate has officially approved the “Guiding and Establishing National Innovation for U.S. Stablecoins of 2025,” or the GENIUS Act , marking a pivotal moment as the U.S. Senate Approves GENIUS Act in the regulation of digital assets. This landmark legislation establishes the first comprehensive federal framework for overseeing stablecoins, paving the way for their mainstream adoption and integration into the broader financial system.

Overcoming Procedural Hurdles

Just a week ago, the bill faced significant obstacles when it failed to clear a key procedural vote. All 49 Democratic senators blocked a motion to invoke cloture on the bill’s consideration, halting its initial path to the Senate floor. However, bipartisan efforts quickly emerged to revise and reintroduce the measure as the U.S. Senate Approves GENIUS Act.

Key Democrats who initially opposed the bill have now thrown their support behind it. Senators Ruben Gallego (D-AZ), Mark Warner (D-VA), Lisa Blunt Rochester (D-PA), Kirsten Gillibrand (D-NY), and Angela Alsobrooks (D-MD) —all of whom voted against cloture earlier this month—are now backing the GENIUS Act. Notably, Alsobrooks and Gillibrand were among the original co-sponsors of the legislation.

“The bill has garnered more than 60 votes and is now expected to quickly move forward to a full floor vote, potentially as soon as tomorrow,” said a source familiar with the matter.

If passed by both chambers and signed into law by President Donald Trump, the GENIUS Act will establish a legal basis for issuing stablecoins in the United States, providing much-needed clarity for issuers, users, and regulators alike. It signifies the moment the U.S. Senate Approves GENIUS Act.

Bipartisan Momentum Behind the GENIUS Act

Introduced by Senator Bill Hagerty (R-TN), the GENIUS Act has received strong bipartisan backing, with co-sponsorship from Senators Cynthia Lummis (R-WY), Kirsten Gillibrand (D-NY), and Tim Scott (R-SC). The legislation seeks to create a clear regulatory framework for stablecoins, which have grown substantially in recent years and now boast an aggregate market capitalization exceeding $250 billion.

Despite initial setbacks, the bill gained momentum after lawmakers addressed concerns about conflicts of interest related to President Trump’s involvement in cryptocurrency ventures like USD1 and his meme coin. Supporters argue that the GENIUS Act is designed to promote innovation while ensuring consumer protection and financial stability.

Senator Bill Hagerty hailed the legislation as a “pro-growth” initiative, stating:

Key Provisions of the GENIUS Act

Under the GENIUS Act, stablecoin issuers will be required to hold reserves in cash and/or Treasury securities, ensuring that these digital assets are fully backed and secure. Additionally, issuers must comply with anti-money laundering (AML) and anti-terrorism financing (ATF) standards, further safeguarding the integrity of the financial system.

The bill also authorizes the Federal Reserve to regulate stablecoins, ensuring they function safely and securely within the broader economy. This regulation follows the decision when the U.S. Senate Approves GENIUS Act.

While the legislation has won bipartisan support, it has not been without criticism. Senator Elizabeth Warren (D-MA) expressed concerns that the bill could benefit President Trump by enabling him to expand his stablecoin venture, USD1, and regulate his own digital currency.

However, many industry leaders and policymakers view the GENIUS Act as a necessary step forward. Bo Hines, executive director of the President’s Council of Advisers for Digital Assets, endorsed the bill, calling it a pragmatic solution for regulating stablecoins.

Justin Slaughter, VP of regulatory affairs at Paradigm and a former Democratic staffer mentioned:

Amanda Tuminelli, executive director and chief legal officer of the DeFi Education Fund, urged bipartisan support, emphasizing that clear rules around stablecoins would benefit consumers, small businesses, and the global standing of the U.S. dollar.

Echoing this sentiment, Ji Kim, acting CEO of the Crypto Council for Innovation, described the vote as “a critical step” toward regulatory clarity.

What’s Next for the GENIUS Act?

Although the GENIUS Act has cleared a major hurdle in the Senate, it still faces a vote in the House of Representatives before it can be signed into law by President Trump. If passed, the bill will provide a robust regulatory framework for stablecoins, positioning the United States as a leader in the rapidly evolving digital asset landscape, all underlined by the pivotal moment that the U.S. Senate Approves GENIUS Act.

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