Senate Votes on GENIUS Act to Regulate Stablecoins

The U.S. Senate is poised to make a pivotal decision on the future of stablecoins with the upcoming vote on the GENIUS Act, scheduled for June 17. This legislation, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, aims to bring clarity and regulation to the stablecoin market by imposing specific rules on issuers. If passed, the bill would require stablecoin providers to fully back their tokens with U.S. dollars or other liquid assets, ensuring a stable value for these digital currencies. Additionally, the bill mandates yearly audits for companies issuing more than $50 billion worth of stablecoins and includes extra compliance measures for foreign issuers.

Following the Senate vote, the GENIUS Act will move to the House of Representatives for further review and voting. The House already has its version of a stablecoin bill, the STABLE Act, which was passed out of committee in May. However, the two bills differ in key areas, particularly in how they regulate state-based issuers and handle oversight for foreign stablecoin companies. For the legislation to become law, both the Senate and House must agree on a final version of the bill. This process underscores the complexity and importance of achieving a unified regulatory framework for stablecoins in the U.S.

The urgency surrounding stablecoin legislation has been amplified by recent statements from President Donald Trump, who has voiced support for clearer crypto laws and called for progress by August. U.S. Treasury Secretary Scott Bessent has also highlighted the potential for massive growth in the stablecoin sector if such legislation is passed. According to the Treasury Secretary, the stablecoin market could reach over $2 trillion by 2028, a significant increase from its current market cap of around $252 billion. This prediction underscores the potential impact of the GENIUS Act on the future of digital currencies.

The vote on June 17 could mark a turning point in the regulation of stablecoins, setting a precedent for other nations and influencing the global stablecoin market. Major investors and competitors, such as Ant Group, are closely watching the developments in U.S. crypto legislation. The passage of the GENIUS Act could open the door for global investors to enter the U.S. market, further solidifying the region's position as a leader in digital currency innovation. The outcome of the vote will be crucial in determining the future trajectory of stablecoins and their role in the broader financial landscape.