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The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), officially designated as S. 1582 [1], is a landmark piece of U.S. legislation aimed at establishing a comprehensive federal regulatory framework for stablecoins—a type of cryptocurrency typically pegged to fiat currencies like the U.S. dollar [2] [3]. Sponsored primarily by Senator Bill Hagerty (R-TN) [1] [4], the bill passed the Senate on June 17, 2025, with a vote of 68-30 [2] [3] [5]. It represents a significant federal effort to regulate stablecoins and is considered a step toward broader cryptocurrency regulation in the United States [2] [3].
Stablecoins have become integral to the cryptocurrency ecosystem, offering price stability and facilitating digital transactions. However, the rapid growth of the stablecoin market, now exceeding $250 billion in market capitalization, has raised concerns about financial stability, consumer protection, and the lack of a clear regulatory framework [2] [3].
The GENIUS Act was introduced to address these concerns by providing a structured approach to the issuance and regulation of stablecoins, thereby enhancing oversight and boosting investor confidence in the digital asset space [2] [3].
The GENIUS Act outlines several critical components:
Initially, the GENIUS Act faced hurdles due to partisan disagreements and concerns over potential conflicts of interest, particularly relating to former President Donald Trump's involvement in cryptocurrency ventures [2] [3] [5]. However, the bill, sponsored by Senator Hagerty [1] [4], gained momentum after revisions and bipartisan negotiations. It passed the Senate on June 17, 2025, with a vote of 68-30 [2] [3] [5]. The bill now awaits consideration in the House of Representatives [2] [3]. If enacted, it will mark a significant shift in U.S. cryptocurrency policy, providing clearer guidelines for the rapidly growing digital asset industry and potentially setting precedents for broader cryptocurrency regulation [2] [3].
Sam Kazemian, cofounder of the stablecoin protocol, FRAX Finance expressed his support towards the bill:
"There’s only one token/project that will benefit the most as soon as the ink is dry on this historic bill, the one whose entire roadmap is being the first licensed legal tender stablecoin." - he tweeted
He also tweeted:
"GENIUS Bill is such a big deal the big brains that understand the ramifications think the entire market should reprice. I agree, but now imagine a concentrated pick whose entire roadmap is based on the post-GENIUS landscape. How much is that worth? Few."
The passage of the GENIUS Act is seen as a pivotal moment in the regulation of digital assets in the U.S. By establishing a clear legal framework for stablecoins, the legislation aims to:
The GENIUS bill passed the Senate on June 17, 2025, with a vote of 68-30 [2] [3] [5]. This marks the first time the Senate has passed a comprehensive federal law governing stablecoins [2] [3]. The proposed legislation mandates that issuers maintain full reserves in liquid assets, undergo regular audits, and comply with anti-money laundering measures [2] [3]. It also establishes a dual licensing system at both federal and state levels, depending on the issuer's size and scope. The bill grants sweeping authority to the Department of Treasury for oversight [3].
The bill has received support from both crypto industry leaders and lawmakers seeking to maintain U.S. competitiveness in digital finance [2] [3]. However, it has also drawn criticism over provisions such as the exemption of the U.S. President and their family from certain conflict-of-interest rules, raising concerns about transparency and influence [2] [3] [5]. Senator Jeff Merkley (D-Ore.) was a chief critic, accusing Republicans of "rubberstamping Trump's crypto corruption" by blocking efforts to bar the president from profiting [3] [5]. The bill now moves to the House of Representatives for further consideration [2] [3].