The United States Senate has passed landmark legislation to regulate stablecoins, marking a significant step forward for the cryptocurrency industry and its growing political influence in Washington.
In a bipartisan 68-30 vote on Tuesday, senators approved the GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, which establishes the first federal framework for regulating dollar-pegged digital tokens.
Senator Tim Scott cheered the “bold step forward”, noting that, “We’re bringing clarity to a sector that’s been clouded by uncertainty and proving that bipartisan, principled leadership can still deliver real results for the American people.”
The bill requires stablecoins to be backed by liquid assets such as U.S. dollars and short-term Treasury securities and mandates monthly public disclosures of reserve compositions.
Issuers would also be subject to Anti-Money Laundering (AML) standards and monthly audits under the proposed law.
The legislation’s passage is being hailed as a historic milestone by crypto proponents, who have long pushed for regulatory clarity.
With the House of Representatives, controlled by Republicans, still passing its version, the bill is not yet law. However, the Senate’s approval signals a turning point for digital assets on Capitol Hill.
Still, challenges lie ahead. The Conference of State Bank Supervisors has warned that the bill needs “critical changes” to safeguard financial stability.
The House may introduce amendments that could delay or alter the final structure of the law.
Stablecoins are digital tokens that aim to maintain a constant value - typically pegged 1:1 to the U.S. dollar - and are widely used by crypto traders as a bridge between tokens or for international transfers.
Their utility and adoption have accelerated in recent years, prompting central banks and regulators to consider oversight frameworks.
The GENIUS Act would allow a broad class of institutions, including banks, fintechs, and even major retailers, to issue stablecoins, provided they meet reserve and reporting requirements. This regulatory green light could encourage further innovation in blockchain-based payment infrastructures.
Among the early movers, Shopify has already implemented USDC payments through partnerships with Coinbase and Stripe.
Traditional payment processors face profound implications. Shares of Visa, Mastercard, PayPal, and Block all slid late last week, following a Wall Street Journal report that Amazon and Walmart are actively exploring the launch of their own stablecoins.
The trend has benefited crypto-native firms like Circle, whose shares have surged over 400% since its public listing on June 5, fuelled by rising institutional interest in stablecoins.
President Donald Trump, who is expected to sign the bill into law if it reaches his desk, has also embraced crypto. In January, he launched a meme coin called $TRUMP, and holds a stake in World Liberty Financial, a digital asset firm co-owned by his children.
Despite this, the White House has maintained that there are no conflicts of interest, stating that Trump's assets are held in a trust managed by his family.
