The Senate recently approved the GENIUS Act, establishing a regulatory framework for stablecoins—cryptocurrency tokens tied to the U.S. dollar. The bill passed 68-30 with bipartisan support, including backing from several Democrats alongside the majority of Republicans.
Stablecoins are commonly used to transfer funds between digital tokens while maintaining a steady value, often pegged 1:1 to the U.S. dollar. Proponents argue that clear regulations could encourage wider adoption and facilitate immediate payments.
Under the proposed legislation, stablecoin issuers would be required to back tokens with liquid assets, such as short-term Treasury bills or cash, and disclose the composition of their reserves on a monthly basis. The measure represents a significant step in creating a legal framework for a rapidly growing sector of the digital economy.
The cryptocurrency industry has long lobbied for federal regulations, viewing them as essential for broader adoption. During the last election cycle, the sector spent over $119 million supporting pro-crypto congressional candidates. While the House passed a stablecoin bill last year, it stalled in the Senate under Democratic control.
Trump has repeatedly emphasized the economic potential of cryptocurrency and sought to reshape U.S. rules around digital assets during his campaign and presidency. Bo Hines, head of Trump’s Council of Advisers on Digital Assets, said the administration aims to see stablecoin legislation enacted by August, underscoring the urgency among Republicans to deliver on one of Trump’s signature policy promises.
If passed by the Republican-controlled House, the bill will advance to the president’s desk, marking a historic step toward formal oversight of the cryptocurrency market in the United States.
