U.S. Senate Passes GENIUS Act to Regulate Digital Assets

The U.S. Senate has passed the GENIUS Act, marking a significant milestone in the regulation of digital assets. This bipartisan legislation, spearheaded by Senator Bill Hagerty, aims to establish a comprehensive regulatory framework for payment stablecoins, emphasizing U.S. leadership in digital finance. Hagerty highlighted that the act brings the United States closer to becoming the global crypto capital, modernizing the payment system to align with digital needs and reducing financial risks through clear guidelines.

The GENIUS Act outlines procedures for issuing payment stablecoins, defining roles for both state and federal authorities. It mandates that stablecoins be fully backed by cash equivalents or short-term Treasury securities, ensuring strong consumer protection standards throughout their lifecycle. This framework is designed to promote responsible innovation and align the payment system with the evolving digital landscape.

Crypto executives have welcomed the new legal framework, viewing it as a major step forward for digital finance. Gemini Co-founder Cameron Winklevoss praised Senator Hagerty for his leadership in guiding the legislation through the Senate, expressing optimism that the U.S. is poised to become the crypto capital of the world. Gate’s COO Sandra Lou emphasized the importance of transparency and compliance, noting that the act signals a future where trust is earned at scale. Circle CEO Jeremy Allaire described the Senate’s approval as a significant step that will strengthen the U.S. economic standing and national competitiveness for decades.

Industry leaders also expressed enthusiasm about the potential of stablecoins to drive mainstream usage. Magic Labs’ co-founder and CEO Sean Li called the moment historic, stating that stablecoins simplify onboarding and mark the true beginning of crypto going mainstream. TRON founder Justin Sun briefly supported the legislation, stating simply, “Progress.”

Hagerty noted that under the new regulatory framework, stablecoin issuers could become leading U.S. Treasury holders by 2030, reinforcing the dollar’s global leadership and improving national fiscal strength. Bo Hines commented on the potential benefits, highlighting the act’s role in upgrading payment infrastructure, reinforcing dollar dominance, and providing regulatory clarity. These changes are expected to enhance financial stability and promote sustainable innovation.

Several senators, including John Thune, Tim Scott, Cynthia Lummis, Kirsten Gillibrand, and Angela Alsobrooks, supported the measure. While views on its long-term impact may differ, the approval marks a policy shift toward digital finance. With legal backing, stablecoins may integrate more closely into traditional banking systems, accelerating crypto adoption among consumers and businesses. Industry officials expect clearer rules to reduce costs and drive efficient cross-border payments, potentially enhancing U.S. leadership in global digital asset markets.