The U.S. Senate has taken a major step toward regulating the fast-growing stablecoin market. In a 68-30 vote, lawmakers advanced the GENIUS Act, a bipartisan bill aimed at establishing clear rules for stablecoin issuers. This move signals a significant shift in how the government approaches crypto innovation and consumer protection.
What the GENIUS Act Means for Stablecoins
If passed, the GENIUS Act would require all stablecoins to be fully backed by U.S. dollars or similarly liquid assets. Issuers holding more than $50 billion in value would also face mandatory annual audits. These measures aim to bring transparency and accountability to the stablecoin market, which has seen rapid growth in recent years.
Senate Banking Chair Tim Scott called the bill “a win for both innovation and national security,” noting that it lays the groundwork for responsible crypto development. The legislation received strong bipartisan support, although some Democrats—like Chuck Schumer and Elizabeth Warren—voted against it, citing concerns over consumer risk and regulatory gaps.
Trump Administration and Crypto Policy
The bill also received backing from the Trump administration. In a statement, officials said President Trump would sign the GENIUS Act into law if it reaches his desk. Trump has previously expressed strong support for crypto innovation and is known to have ties to digital asset ventures, positioning himself as a pro-crypto leader heading into the next election cycle.
While the Senate’s approval is a major milestone, the GENIUS Act still faces challenges in the House of Representatives. A separate stablecoin bill has already passed out of committee there, meaning both chambers will need to reconcile the two versions before final legislation can be sent to the President.
As the U.S. moves closer to comprehensive stablecoin regulations, the GENIUS Act could play a crucial role in shaping the future of digital finance.
