Senate Passes GENIUS Act 68-30 for Stablecoin Regulation

The GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins Act, has successfully passed through the Senate with a bipartisan vote of 68 to 30. This marks the first federal blueprint for the crypto industry, specifically addressing stablecoins. However, the path forward is not straightforward as House leaders are considering whether to merge the GENIUS Act with the Digital Asset Market CLARITY Act, a broader bill that has already been advanced by two committees.

Representative Tom Emmer advocates for bundling the measures, arguing that a single vote could establish a comprehensive rulebook. Conversely, President Trump favors a clean bill, cautioning that additional provisions could jeopardize its summer passage. The decision on how to proceed will significantly influence the speed at which the GENIUS Act reaches the President's desk.

Under the GENIUS Act, payment stablecoins are classified as neither securities nor commodities. Large issuers will be required to report to the Federal Reserve or the Office of the Comptroller of the Currency, while smaller firms will remain under state supervision. Each token must be backed 1:1 by cash or Treasurys, audited monthly, and redeemable on demand. These measures are designed to prevent another algorithmic crash, ensuring stability and trust in the market.

Progressives, including Senators Warren and Merkley, have raised concerns about the carve-out allowing presidential families to invest in stablecoin firms, arguing that it undermines public trust. Watchdogs are urging the House to tighten these ethical loopholes before approving the measure, highlighting the need for stricter oversight and transparency.

The GENIUS Act is more than just a regulatory milestone; it represents a critical test of America’s leadership in digital finance. As Europe advances with MiCA and Asia embraces central bank digital currencies, the U.S. response to the GENIUS-CLARITY standoff will set the tone for global stablecoin competitiveness. Passing the act swiftly would legitimize U.S. stablecoin issuers and reinforce the dollar’s supremacy, while delays could cede innovation to overseas markets that are moving faster.

Analysts forecast that dollar-denominated stablecoins could grow to a $2 trillion market within a decade if Congress finalizes the GENIUS Act. Policy researchers estimate that properly regulated tokens could reduce remittance fees by 40 percent, saving households billions. Such savings would benefit emerging markets, broadening financial inclusion and fostering economic growth.

The upcoming vote in the House will determine whether the GENIUS Act accelerates U.S. leadership in digital dollars or stalls amid partisan negotiations. Investors should closely monitor committee schedules, whip counts, and amendments, as even minor language tweaks could have significant overnight impacts on tokenized finance valuations. Regardless of the outcome, the House’s next move will be crucial for every exchange, fintech, and developer building on stablecoins.