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The U.S. Senate has passed the GENIUS Act with strong bipartisan support in a 68–30 vote
The legislation has laid out the first federal framework for regulating U.S. dollar-pegged stablecoins
The bill has now advanced to the House, with backers pushing for it to reach President Trump’s desk before the August recess

In a big step toward regulating crypto in the U.S., the Senate yesterday passed the GENIUS Act with strong bipartisan support, putting the country closer than ever to establishing real federal rules around stablecoins. The bill lays out how dollar-pegged digital tokens should be issued, backed, and supervised, filling a gap that has been wide open for years. With the legislation now heading to the House, lawmakers are hoping it can be signed into law by summer’s end, which could mark a turning point for crypto’s role in the financial system, although not everyone is overjoyed by the prospect.

Senate Clears First Federal Stablecoin Framework

The Senate approved the GENIUS Act in a comprehensive 68–30 vote, making it the first time Congress has backed a clear set of federal rules for stablecoins. Officially titled the “Guiding and Establishing National Innovation for U.S. Stablecoins” Act, the bill requires that any stablecoin tied to the U.S. dollar be backed fully by cash or short-term Treasury bonds, with regular audits and strict federal oversight. 

The bill plans to prevent implosions like Terraform Labs’ UST coin, which was not backed by anything other than a faulty algorithm, leading to losses in the tens of billions when it collapsed in 2022. Senator Bill Hagerty, a co-sponsor of the bill, rejoiced in the victory:

This is a landmark moment. With this vote, we’re one step closer to putting the U.S. at the forefront of global crypto innovation.

The bill also opens the door for federally regulated banks to issue their own stablecoins, as long as they meet transparency standards and comply with anti-money laundering laws. Supporters say it’s about striking a careful balance: making space for innovation while protecting consumers and giving the market some long-overdue clarity. Without it, they argue, the U.S. risks falling behind as states come up with their own conflicting rules.

Trump Ties and Big Tech Concerns Loom Large

Not all lawmakers are celebrating the move, however. Some Democrats, including noted crypto skeptic Senator Elizabeth Warren, expressed alarm over the bill’s potential to benefit President Trump’s personal crypto ventures, including the controversial USD1 stablecoin tied to his World Liberty Financial group. “It would make Trump the regulator of his own financial company and, importantly, the regulator of his competitors,” Warren warned, criticizing the lack of safeguards against self-dealing or tech monopolization.

There are also broader concerns that the bill doesn’t go far enough to prevent major tech companies from issuing their own stablecoins without adequate checks.

Next Stop: House Floor

The bill now heads to the House of Representatives, where it’s expected to win Republican backing. Some lawmakers want to pair it with other legislation, such as the CLARITY or STABLE Acts that deal with a wider range of crypto assets, but merging bills could merely slow progress.

Still, Tuesday’s vote marked a rare moment of agreement in Washington when it comes to crypto, and for supporters, it’s the clearest sign yet that federal rules for digital money might finally be within reach.

The post GENIUS Act One Step Closer After Passing Senate Vote appeared first on FullyCrypto.

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Filed under: Bitcoin - @ June 18, 2025 8:20 am