US Senate Passes GENIUS Act for Stablecoin Regulation 68-30

The US Senate has passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act with a vote of 68-30. This legislation, introduced by Tennessee Senator Bill Hagerty roughly six weeks prior, aims to establish a regulatory framework for stablecoins in the United States. The bill's companion, the STABLE Act, is now set to be considered by the House of Representatives, where it may face additional amendments.

Senator Hagerty emphasized the significance of the GENIUS Act, stating that its passage brings the US closer to becoming a global leader in cryptocurrency. He highlighted that the legislation would enable businesses and individuals to settle payments almost instantaneously, reducing the waiting time from days to weeks. The bill initially faced opposition from Democrats due to concerns over Donald Trump's connections to the cryptocurrency industry, particularly his family's stake in World Liberty Financial, which issued its own USD1 stablecoin in March.

The future of the stablecoin legislation in the House remains uncertain, as Republicans hold a slim majority. Trump's AI and crypto czar, David Sacks, suggested that the president would support the bill if passed by a Republican-controlled Congress. The passage of the GENIUS Act could potentially open the door for companies like Apple, Google, social media platform X, and Airbnb to issue their own tokens, as these companies have reportedly been exploring the matter.

Treasury Secretary Scott Bessent noted that the stablecoin market could grow into a $3.7 trillion industry by the end of the decade, a scenario that becomes more likely with the passage of the GENIUS Act. However, the legislation faces pushback from some Democrats who are concerned about Trump's crypto ties. Financial policy advocate Bartlett Naylor criticized the bills, stating that they serve to legitimize what he considers a massive scam with the American flag.

As the stablecoin legislation moves closer to the president's desk, lawmakers in the House are still awaiting a vote on the CLARITY Act. This bill aims to establish clear market structure rules for digital assets and has passed through the House Agriculture Committee and House Financial Services Committee. However, it faces similar pushback from Democrats due to concerns over the president's crypto ties.