GENIUS Act Clears Senate, Setting the Stage for Stablecoin Oversight

The US Senate has handed the Guiding and Establishing Nationwide Innovation for US Stablecoins (GENIUS) Act in a 68 to 30 vote on June 17.

The landmark invoice units the primary federal rules for dollar-pegged stablecoins in America and has been lauded by the crypto trade.

“The GENIUS Act will defend shoppers, allow accountable innovation, and safeguard the dominance of the U.S. greenback,” mentioned Senator Kirsten Gillibrand, one of many invoice’s sponsors.

Having passed the Senate, the invoice nonetheless must go the Republican managed Home earlier than it may be made into legislation.

JUST IN: Senate passes GENIUS Act for federal stablecoin regulation, by a vote of 51-23.

Now strikes to the Home.

— Bitcoin Legal guidelines (@Bitcoin_Laws) June 17, 2025

Greenlight for Stablecoins

The GENIUS Act was launched by Senator Invoice Hagerty in February to manage the $260 billion stablecoin market. Talking after the vote on Tuesday, Hagerty mentioned:

“That is going to open the door for innovation in America like we’ve by no means seen earlier than. That is an inflection level shifting the USA into the digital age,”

He added that the invoice was step one in ensuring that the greenback stays the dominant forex of the world. By shifting funds onto the blockchain, this can create extra effectivity and take loads of the fee out of the system, he added.

The GENIUS Act has PASSED within the Senate! pic.twitter.com/aWEgYKXNgf

— Senator Invoice Hagerty (@SenatorHagerty) June 17, 2025

Treasury Secretary Scott Bessent was additionally onboard, saying that “Stablecoin laws backed by US Treasuries or T-bills will create a market that may develop US greenback utilization through these stablecoins all around the globe.”

US Senate Committee on Banking, Housing, and City Affairs Chairman Tim Scott referred to as it a historic day for our nation.

“After voting on 40 amendments […], we have been capable of forge a bit of laws that focuses on {the marketplace}.”

The legislation requires stablecoins to be totally backed and for issuers to bear common safety audits and approval from federal or state regulators. It additionally imposes limitations on algorithmic stablecoins and people with out full backing.

NEW: The GENIUS Act has formally handed the Senate.

I caught up with @BankingGOP Chair @SenatorTimScott after the vote. He referred to as it a “historic day for our nation” and mentioned the main target now shifts to market construction.

“Let’s get this get together began.” pic.twitter.com/4U1dGQoTl2

— Eleanor Terrett (@EleanorTerrett) June 17, 2025

It additionally opens the door to a “broader vary of issuers,” together with banks, fintech corporations, and main retailers or tech giants trying to launch their very own stablecoins or combine them into current fee programs, reported CNBC.

Democrats in Opposition

However, a number of Democrats have been towards the invoice and tried to pressure amendments to it earlier than the vote.

Democrats tried to amend the invoice to stop President Trump and his household from profiting off crypto ventures. Nevertheless, the ultimate laws solely prohibits members of Congress and their households from doing so.

Associated laws, the Stablecoin Transparency and Accountability for a Higher Ledger Economic system (STABLE) Act, can also be making its method by means of Congress.