US Senate Advances GENIUS Act 68-30 for Stablecoin Regulation

The Guiding and Establishing National Innovation for US Stablecoins Act, known as the GENIUS Act, is currently facing a crucial vote in the United States Congress, with significant implications for the cryptocurrency industry. If the US Senate passes the GENIUS Act, it will move closer to regulating stablecoins, marking a major victory for the crypto industry and the Trump administration, which supports the legislation. The bill will then proceed to the House of Representatives for further scrutiny.

The Senate voted 68-30 to advance the bill on June 11, allowing for amendments before a final vote. Several Democrats joined a majority of Republicans to win the cloture vote, with some echoing US President Donald Trump’s desire to make the country “the crypto capital of the planet.”

Industry voices have expressed optimism about the bill. Coinbase Chief Legal Officer Paul Grewal highlighted its potential to bring regulatory clarity. However, critics argue that the GENIUS Act lacks adequate safeguards, particularly around the potential for self-dealing by entities authorized to issue stablecoins. Senator Elizabeth Warren has been among the most vocal opponents, warning that the bill could “actively facilitate” misuse tied to Trump’s crypto businesses.

Key amendments to the legislation include a provision aimed at preventing elected officials and their families from issuing stablecoins, addressing concerns about conflicts of interest. If enacted, the GENIUS Act could significantly reshape the landscape for US crypto regulation. Industry stakeholders believe the legislation may help solidify the dollar’s role in the digital economy and lay the foundation for a more structured global financial framework.

The GENIUS Act would establish an oversight system for stablecoins, requiring issuers to register with the US government, have 1:1 backing for their stablecoins, face regular audits, and submit to Anti-Money Laundering regulations. According to Roshan Robert, CEO of OKX US, the Act creates “a vital bridge for traditional finance to explore blockchain-powered payments and settlement.”

Stablecoins are often seen as a key bridge between traditional finance and digital assets. These fiat-pegged tokens, most of which are linked to the US dollar, could allow people around the world to easily send money across borders with fewer fees and pay for goods at a variety of merchants. The legislation could also set the stage for the regulation of decentralized, programmable money, potentially impacting the prospects of a central bank digital currency (CBDC) in the US.

“The stablecoin bill is equally important,” said Mike Cahill, CEO at Douro Labs. “With major financial institutions already exploring issuance, clear federal guardrails will legitimize stablecoins as a new category of programmable money — integrated into payments, settlement, and even treasury management. If the U.S. gets this right, it won’t just lead the crypto market — it will write the rulebook for the next global financial system.”

Supporters of the bill argue that it could strengthen the dollar's position as most stablecoins are pegged to the dollar, potentially enhancing its influence in the digital economy. According to DefiLlama, the two largest stablecoins in the crypto space are pegged to the dollar — Tether’s USDt (USDT) and Circle’s USDC (USDC). Together, these tokens make up a significant portion of the total stablecoin market cap.

“Talk of de-dollarization misses the bigger point: Dollar-backed stablecoins are the new 21st-century financial power tool,” said Bill Sebell, executive director of XDC Foundation. If the GENIUS Act were to pass, now “anyone with a smartphone can hold a compliant digital dollar, increasing reach and relevance for USD at the exact moment critics predict its decline.”