GENIUS Act Advances Toward Final Approval, Setting Federal Framework for Stablecoins

The U.S. Securities and Exchange Commission (SEC) is on the verge of a significant regulatory milestone with the GENIUS Act, a landmark piece of cryptocurrency legislation, advancing toward final approval. This bipartisan bill, which has already passed the House, is now awaiting the President's signature, expected to occur on Friday. The GENIUS Act aims to establish the first federal regulatory framework for dollar-pegged stablecoins, a move that promises to bring much-needed clarity and innovation to the cryptocurrency market.

SEC Chairman Paul Atkins released a statement on July 17 following the passage of three cryptocurrency bills by the House of Representatives, describing the legislative movement as a pivotal step in reshaping digital finance regulation and supporting stablecoin integration. Atkins applauded the House for advancing the GENIUS Act alongside two other bills, crediting Senate Banking Committee Chairman, House Financial Services Committee Chairman, Senator Cynthia Lummis, and Senator Bill Hagerty for their leadership. He framed the GENIUS Act as a “historic milestone” for crypto entrepreneurs and U.S. financial markets. The act now proceeds to the President for final approval. One of the bill’s key goals is to provide legal clarity for payment stablecoins—a step Atkins views as essential to market progress.

In his statement, Atkins stressed the transformative potential of blockchain, noting that blockchain and crypto asset technologies have the potential to revolutionize America’s financial infrastructure and deliver new efficiencies, cost reductions, transparency, and risk mitigation for the benefit of all Americans. The SEC chairman highlighted that this legislation offers the kind of regulatory certainty developers need to safely innovate, noting that over the coming months and years, he looks forward to watching the market leverage the regulatory framework provided by the GENIUS Act to go to market with payment stablecoins solutions that make transactions quicker, cheaper, and safer—all while maintaining robust risk safeguards.

Supporters argue the new framework balances innovation with risk management, potentially anchoring the U.S. as a leader in crypto development. Although some critics remain cautious about potential instability in digital asset markets, proponents see structured oversight as a crucial enabler of responsible financial technology growth. The passage of the GENIUS Act marks a pivotal moment for the crypto industry, as it represents the first time that comprehensive legislation specifically addressing stablecoins has been approved by the House. This legislation is part of a broader effort by the administration to position the U.S. as a leader in cryptocurrency regulation, potentially outpacing other global powers. The bill's momentum has been reinvigorated following the President's push for its approval, underscoring the administration's commitment to fostering a regulatory environment that supports innovation while ensuring consumer protection.

The GENIUS Act is one of three crypto bills that have recently passed in the U.S. House, alongside the Digital Asset Market Clarity Act and another stablecoin bill. These legislative efforts collectively represent a significant step forward in providing regulatory clarity for the cryptocurrency market. The stablecoin bill, in particular, is almost law, pending the President's signature, which is expected to solidify the regulatory framework for stablecoins and pave the way for further innovation in the sector. The GENIUS Act's passage is not only a regulatory milestone but also a testament to the growing bipartisan support for cryptocurrency legislation. This support is crucial for the industry's development, as it ensures that regulatory frameworks are established in a manner that balances innovation with consumer protection. The bill's advancement toward final approval is a clear indication that the U.S. is taking proactive steps to address the challenges and opportunities presented by cryptocurrencies, positioning itself as a global leader in this rapidly evolving field.