The U.S. Senate has passed the GENIUS Act, the first major cryptocurrency bill to clear the chamber, setting strict regulations for stablecoins.
Backed by both Republicans and some Democrats, the bill requires stablecoins to be fully backed by U.S. dollars or similar assets, mandates audits for large issuers, and limits corporate issuers like Meta and Amazon unless they meet strict standards.
The legislation includes “super-priority” protections for stablecoin holders in insolvency cases. Its passage follows increased support for crypto from President Trump’s administration, which has endorsed the bill and pushed for regulatory clarity.
The House is now expected to decide between advancing its stablecoin bill or adopting the GENIUS Act. Trump has called for final legislation by August, making the House’s next move critical in shaping future U.S. crypto policy.
The GENIUS Act aims to boost stablecoin innovation in the U.S. by introducing federal regulation for stablecoins with market caps over $10 billion while permitting state oversight if aligned with federal rules.
By defining stablecoins as digital cash, the bill seeks to expand their use beyond crypto settlements to everyday payments. Bernstein analysts predict this will shift stablecoins from being just a crypto tool to becoming a core part of internet-based financial infrastructure.
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