Key Points:
- U.S. stablecoin issuers require 1:1 reserves and AML compliance.
- Bill passed Senate 68–30, moves to the House next.
- Industry praises clarity, but concerns over conflicts of interest remain.
The U.S. Senate has passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, marking a historic milestone in the regulation of digital assets. The bill, which directly targets payment stablecoins, secured a 68–30 cloture vote last week and cleared its final hurdle in the Senate on June 17th, 2025. It now advances to the House of Representatives.
The GENIUS Act sets a clear framework for stablecoin issuers in the U.S., requiring 1:1 reserve backing, monthly disclosures, and AML compliance. Only regulated issuers, banks’ subsidiaries or federally/state-qualified entities can issue payment stablecoins.
Despite the controversy, momentum is building behind the legislation. As reported by WatcherGuru, Senator Bill Hagerty stated that passing stablecoin legislation will “propel America’s payment system into the 21st century.”
With over 40 amendments reviewed, the bill was shaped through months of bipartisan negotiations led by Senator Tim Scott. Co-sponsors include Senators Bill Hagerty, Cynthia Lummis, Kirsten Gillibrand, and Angela Alsobrooks. Senator Scott, who also chairs the Senate Banking Committee, emphasized the bill’s role in balancing innovation with national security.
Industry Voices Weigh In
Industry leaders welcomed the move. Ripple CEO Brad Garlinghouse called it a “landmark” shift, comparing its significance to the Dodd-Frank Act.
Opposition
However, the bill has not been without criticism. Senator Elizabeth Warren voiced concerns about potential conflicts of interest tied to Trump-affiliated entities like World Liberty Financial, which has launched its own stablecoin. In response, lawmakers included amendments banning sitting government officials from directly issuing or holding significant stablecoin assets.
Conclusion
The bill arrives amid a growing push to solidify U.S. leadership in crypto policy and maintain the dollar’s dominance in the digital economy. The GENIUS Act’s Senate approval marks a major step toward U.S. stablecoin regulation, offering clarity for issuers and reinforcing dollar dominance. While the bill has broad industry and bipartisan support, concerns over potential conflicts of interest, especially tied to Trump-affiliated ventures, remain a point of contention as it heads to the House of Representatives.
