Senate Passes GENIUS Act, Paving Way for $3.7 Trillion Stablecoin Market

The U.S. Senate has passed the bipartisan Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, marking a significant milestone for the crypto industry. The bill, co-sponsored by Senators Tim Scott, Bill Hagerty, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks, provides a comprehensive framework for payment stablecoins and is the first major financial legislation since the Dodd-Frank Act. The passage of the GENIUS Act has been praised by White House Crypto Czar David Sacks and Treasury Secretary Scott Bessent, who highlighted the potential benefits for the U.S. economy and the global digital finance landscape.

David Sacks, the White House AI and Crypto Czar, praised the GENIUS Act on social media platform X, stating that the legislation provides regulatory clarity, enhances consumer protection, and extends U.S. dollar dominance online. He emphasized the importance of the bill in bringing clarity to a sector that has been clouded by uncertainty and proving that bipartisan, principled leadership can still deliver real results for the American people.

Treasury Secretary Scott Bessent said stablecoins could significantly increase demand for U.S. Treasuries, lowering government borrowing costs and helping address the national debt. According to the analyst's forecast, stablecoins could grow into a $3.7 trillion market by the end of the decade. Bessent noted that a thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back stablecoins. This newfound demand could lower government borrowing costs and help rein in the national debt. It could also onramp millions of new users—across the globe—to the dollar-based digital asset economy. He added: “It’s a win-win-win for everyone involved: The private sector, the Treasury, consumers.”

Many in the crypto industry praised the Senate for passing the bill. Brad Garlinghouse, CEO of Ripple, reflected on the historic significance of the Senate’s decision. He stated on social media platform X: “For years, crypto companies have been calling on Congress to pass crypto legislation and set rules of the road.” The executive added: “This is the first major financial bill since Dodd-Frank — the first crypto bill to pass in the Senate, which now moves to the House, a truly historic moment.”

The GENIUS Act now advances to the House of Representatives. President Donald Trump has signaled his eagerness to sign it into law before the August recess, potentially reshaping the U.S. crypto landscape. The passage of the bill represents a pivotal moment in the history of cryptocurrencies, signaling a shift towards greater acceptance and integration of digital assets into the mainstream financial system. As the regulatory landscape continues to evolve, the industry will need to adapt to new challenges and opportunities, ensuring that the benefits of cryptocurrencies are realized while mitigating the associated risks.