US Senate Passes GENIUS Stablecoin Bill 68-30

The US Senate has passed the GENIUS stablecoin bill, marking a significant advancement in crypto regulation. The bill, formally known as the Guiding and Establishing National Innovation for US Stablecoins of 2025 (GENIUS) Act, was approved with a vote of 68-30, with a notable number of Democrats joining Republicans in support. This bipartisan backing is a crucial step forward for the cryptocurrency industry, which has long advocated for regulatory clarity.

The GENIUS Act is the first major crypto-related bill to clear the Senate. It now heads to the House, where Republicans hold a slim majority. If approved by the House, the bill will proceed to President Donald Trump’s desk for final approval. Trump’s crypto czar David Sacks has indicated that Trump is likely to sign the bill into law.

The bill mandates that for every dollar of stablecoin issued, there must be a corresponding dollar in reserve. This provision aims to ensure stability and trust in these digital assets, providing a much-needed regulatory framework that could foster the growth of the stablecoin market while protecting consumers from potential risks.

Republican Tennessee Senator Bill Hagerty, who introduced the bill, emphasized the significance of this legislation. "With this bill, the United States is one step closer to becoming the global leader in crypto," he stated. The passage of the GENIUS Act is seen as a political bellwether for the cryptocurrency industry, highlighting the need for regulatory clarity for its growth and stability.

However, the journey to the passage of the GENIUS Act has not been without challenges. In May, nine Democrats who had previously supported the bill reversed their stance, calling for revisions to the text. Senators Elizabeth Warren and Ron Wyden successfully blocked an attempt to bring the bill to a floor vote, citing concerns over the Trump family's involvement in crypto ventures. Warren, a long-time advocate for consumer protection, ultimately voted against the final version of the bill, arguing that it lacked adequate regulatory guardrails to prevent corruption.

Despite these concerns, Democrat supporters of the bill maintained that doing nothing was not an option. The bipartisan support for the GENIUS Act is particularly significant, with 18 Democrats joining the majority of Republicans in voting for the bill. However, there were two notable holdouts from the Republican side: Senators Rand Paul of Kentucky and Josh Hawley of Missouri, both of whom are known for their criticism of Big Tech.

The House of Representatives is working on its own companion legislation, the STABLE Act, which is a more sweeping crypto bill that would provide a framework for the wider crypto market, not just stablecoins. While it remains uncertain whether the GENIUS Act will pass the House, Republicans do have a slight majority over Democrats. If it passes the House, it will then head to President Donald Trump’s desk for final approval.

The passage of the GENIUS Act is a notable victory for the cryptocurrency industry, which has been actively lobbying for regulatory clarity. This development underscores the growing importance of digital assets in the financial landscape and the need for comprehensive regulation to ensure their safe and responsible use. As the bill moves to the House, the cryptocurrency industry will be closely watching its progress, hoping for a similar bipartisan support that could see it become law.