GENIUS Act Passes Senate 68-30, Advances to House for Stablecoin Regulation

The GENIUS Act, a significant piece of legislation aimed at regulating stablecoins, has successfully passed the Senate and is now advancing to the House of Representatives. The bill, which received a 68-30 vote in the Senate on June 17, 2025, demonstrates significant bipartisan support for the regulation of stablecoins. The Senate-passed GENIUS Act will now be considered by the House, where leaders will decide whether to adopt the Senate text or seek a conference to reconcile any differences.

The GENIUS Act is the first major crypto bill to pass the Senate and is now in the hands of the House of Representatives. President Trump has expressed his intent to sign stablecoin legislation before Congress's August recess, indicating a potential swift passage if the House approves the bill. However, the bill's future remains uncertain as it was immediately "held at the desk" upon receipt by the House on June 23, 2025. This means that the bill will not be immediately considered by the House and may face delays or amendments.

The GENIUS Act's progress may be tied to the CLARITY Act, which covers digital assets. Majority Whip Tom Emmer has stated that the House will vote on the GENIUS stablecoin bill only if the CLARITY Act advances together. This linkage could either expedite the GENIUS Act's passage or further complicate its journey through the legislative process. The GENIUS Act, if passed, would create a regulatory framework for stablecoins and require the digital asset to be backed by the U.S. dollar, providing much-needed clarity and stability to the crypto market. The bill's advancement to the House marks a significant step forward in the regulation of stablecoins and could reshape the legal landscape for digital assets in the United States.

Reconciliation with the STABLE Act remains vital, as regulatory outcomes may influence stablecoin market dynamics. The GENIUS Act proposes a regulatory framework specifically targeting dollar-backed stablecoins. House leaders and committees are examining potential integration with their STABLE Act, ensuring cohesive legislation for stablecoins. The SEC's recent withdrawal of proposed rules coincides with these governmental shifts.

Institutional issuers may find U.S. market entry appealing given potential regulatory clarity. The GENIUS Act's passage encourages a structured approach to stablecoin management. The Bundestag approach to stablecoin regulation may ameliorate existing market uncertainties, impacting operational guidelines for issuers. Enhanced consumer protection mechanisms are anticipated. Historical trends indicate previous legislative stagnation, but the GENIUS Act's current progress suggests optimism for stablecoin regulatory clarity. The outcome of this legislative process remains influential for fintech advancements.