Congress Passes GENIUS Act Regulating Stablecoins 308 to 122

In a landmark move for the digital asset sector, Congress passed the first federal legislation to regulate stablecoins on Thursday. The bill, a key component of what Donald Trump has termed “Crypto Week,” lays the foundation for a regulatory framework governing dollar-linked tokens. This legislation gained broad bipartisan support in the House after previously clearing the Senate and is now poised to become law.

The bill was championed by Republicans and strongly supported by Trump, who reportedly lobbied lawmakers to back the measure. It introduces both state and federal oversight for dollar-backed stablecoins, facilitating their broader integration into the financial system. Proponents argue that this step could enable faster and cheaper payment mechanisms while conferring long-sought legitimacy to the stablecoin market, which analysts estimate could grow significantly in the coming years.

This legislation marks a significant political milestone for the crypto industry. Following the collapse of the FTX exchange, the industry has regrouped with increased political activity and funding. The bill sets regulatory rules for dollar-backed stablecoins, mandating that issuers hold equivalent reserves in safe, short-term assets such as government debt. This structure aims to protect consumers while enabling stablecoins to function as more reliable mediums of exchange.

Despite the bill’s momentum, not all lawmakers were in favor. Prominent Democrats, including Senator Elizabeth Warren and Representative Maxine Waters, voiced concerns about the potential risks to consumers. They warned that inadequate safeguards could create conditions for future government bailouts if issuers of these digital tokens were to fail. Some Democrats also attempted, unsuccessfully, to include language that would prevent elected officials, including Trump and their families, from participating in stablecoin ventures.

The measure’s passage has already prompted a response from some of the country’s top banking executives. On recent earnings calls, leaders such as JPMorgan Chase’s Jamie Dimon, Bank of America’s Brian Moynihan, and Citigroup’s Jane Fraser acknowledged the growing threat posed by stablecoins to traditional payment systems. They noted that the emergence of a digital dollar and stablecoin alternatives could potentially draw customer deposits away from banks and disrupt existing financial networks.

Stablecoins also hold promise for revolutionizing cross-border payments and could open the door for financial institutions, card networks, and tech firms to issue their own digital tokens. Several major banks, including JPMorgan, have recently expressed interest in participating in the stablecoin ecosystem. Companies already active in the U.S. stablecoin market, such as Circle Internet Group Inc., may stand to gain the most in the short term, given their readiness to comply with the new regulatory standards.

Eswar Prasad, a senior fellow at the Brookings Institution, described the measure as a long-awaited legitimization of the stablecoin industry, noting that it comes with “relatively light-touch regulation.” As the stablecoin legislation moves toward enactment, the broader crypto market and traditional financial institutions alike are preparing to navigate this evolving landscape.

The United States House of Representatives passed the Guiding and Establishing National Innovation for US Stablecoins Act, or the “GENIUS Act,” on July 17, 2025. This landmark legislation, backed by President Donald Trump and championed by Republican lawmakers, establishes a regulatory framework for payment stablecoins. The bill requires these tokens to be backed by liquid assets such as U.S. dollars and short-term Treasury bills, ensuring stability and trust in the digital currency market.

The GENIUS Act passed with a bipartisan vote of 308 to 122, with 206 Republicans and 102 Democrats supporting it. This vote came after a period of uncertainty when right-wing Republicans staged a rebellion, bringing the floor to a standstill. The holdouts eventually agreed to fall in line after meeting with President Trump, who had pressed Congress to quickly pass the GENIUS Act as a standalone bill. The legislation is now headed to President Trump's desk for signature, where it is expected to be signed into law as soon as Friday.

The passage of the GENIUS Act marks a significant milestone in the regulation of cryptocurrencies in the United States. It is the first major standalone crypto bill to be passed by Congress, setting a precedent for future legislation in this rapidly evolving field. The bill aims to make the U.S. a leader in digital assets by providing a clear regulatory framework for stablecoins, which are a type of cryptocurrency tied to the value of an asset like the U.S. dollar.

The GENIUS Act has faced criticism from some Democrats who argue that the legislation does not contain strong enough provisions to protect consumers, the financial system, and national security. However, supporters of the bill, including President Trump, have argued that regulations are long overdue and that the measure, even if imperfect, provides a necessary framework for the digital currency industry.

The passage of the GENIUS Act is a victory for the crypto industry, which has long sought clear regulatory guidelines. The bill's approval sends a strong signal to the global market that the U.S. is committed to embracing digital assets while ensuring their stability and security. This legislation is expected to have a significant impact on the future of cryptocurrencies, paving the way for further innovation and growth in the digital currency market.