U.S. Senate officially approves the GENIUS Act, marking the country’s first significant step toward regulating stablecoins through a federal framework. The legislation, known as the “Guiding and Establishing National Innovation for U.S. Stablecoins of 2025,” aims to provide legal clarity for issuing and managing stablecoins in the United States.
The vote comes just one week after the bill initially stalled. All 49 Democratic senators had previously blocked a motion to proceed, citing political and procedural concerns. Recently, bipartisan talks helped revise the measure, bringing back support from several key Democrats.
Renewed support paves way for senate approval
The bill passed after winning support from more than 60 senators. Notable Democrats, including Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Kirsten Gillibrand, and Angela Alsobrooks, shifted their positions to support the measure. Gillibrand and Alsobrooks had co-sponsored the original version of the legislation.
With the Senate’s approval, the GENIUS Act now heads to the House of Representatives, where a vote is expected soon. The bill will move to President Trump’s desk for final approval if passed there. The legislation was introduced by Senator Bill Hagerty and co-sponsored by Cynthia Lummis, Kirsten Gillibrand, and Tim Scott. It targets stablecoin regulations at a time when the market cap for these digital assets exceeds $250 billion.
Stablecoin rules aim to protect consumers and strengthen the Dollar
Under the GENIUS Act, issuers must hold cash or Treasury securities reserves and follow anti-money laundering and anti-terrorism financing standards. The Federal Reserve could oversee these activities to ensure safety and compliance.
A Several members of Congress are concerned that the legislation might improve how President Trump deals with cryptocurrency involving USD1 and his meme coin. He explained that if the bill is approved, Trump might be able to influence the regulations they already have in place.number of lawmakers are worried that the legislation could improve conditions for the crypto activities of President Trump focused on USD1 and his meme coin. Warren emphasized that passing the measure could allow Trump to affect rules set over his businesses. Despite these concerns, many in the crypto and legal sectors have welcomed the bill as a balanced approach. Senator Hagerty described the legislation as a pro-growth measure that supports the U.S. dollar.
Industry leaders endorse push for regulatory clarity
Many in the industry feel that the Senate approval was a key achievement. Amanda Tuminelli from the DeFi Education Fund called for both parties to support a stablecoins ruleset. The Crypto Council for Innovation’s Ji Kim believes this is necessary for the U.S. to hold a leading position in worldwide digital finance.