In a major step for the crypto world, the U.S. Senate on Tuesday passed the GENIUS Act: a bipartisan bill that lays out clear rules for stablecoins.
The 68-30 vote marks the Senate’s first big approval of any crypto-related law, showing how Washington’s attitude toward the industry is starting to shift.
The legislation, formally called the Guiding and Establishing National Innovation for U.S. Stablecoins GENIUS Act, is seen as a breakthrough moment for digital assets, especially stablecoins, digital tokens tied to the U.S. dollar.
Long viewed with skepticism by lawmakers, the cryptocurrency sector now appears to be on the verge of gaining the federal legitimacy it has sought for years.
“To modernize our payment system and to restore our nation’s competitive edge, we must act now,” said Senator Bill Hagerty, Republican of Tennessee and the bill’s lead sponsor. Stablecoins backed one-to-one by cash and short-term Treasuries will give Americans safe, fast, and reliable payment options.
The bill heads next to the House, where a competing version, the STABLE Act, is also under review. If aligned, the legislation would be sent to President Trump, whose administration has shown support for a lighter-touch approach to digital asset oversight.
In a policy statement, the White House said the bill “removes regulatory uncertainty” and strengthens the dollar’s dominance in the crypto space.
The vote follows an aggressive lobbying push by crypto executives and political strategists, who spent over $250 million in the 2024 election cycle through crypto-backed super PACs.
Backed by crypto-aligned super PACs, 53 of 58 targeted candidates won their seats, giving the industry the bipartisan boost it needed to advance stablecoin rules.
The GENIUS Act lays out a clear legal path for companies to issue U.S. dollar–pegged stablecoins, provided they hold full reserves, undergo monthly audits, and adhere to Treasury-led oversight.
The bill bans yield-bearing consumer stablecoins and assigns oversight to the Treasury Department, not the Federal Reserve.
“This is a foundation for legitimizing stablecoins and embedding them into the global network of money movement,” said John Wu, president of Ava Labs.
A Divided Senate
Despite bipartisan support, several top Democrats opposed the bill over its lack of anti-corruption rules, particularly those aimed at preventing Trump and his family from profiting via crypto ventures. Senator Elizabeth Warren called it “thin regulation,” warning it could repeat the mistakes of the 2008 financial crisis.
“Why is the industry here asking for regulation? They want the gold star of U.S. government oversight without really having significant oversight,” Warren said.
Senator Jeff Merkley had proposed an amendment to stop sitting presidents and their families from launching their own stablecoins, but Republicans blocked it. Democratic leader Chuck Schumer also criticized the bill, saying it didn’t go far enough to address corruption concerns.
Even so, Democrats like Kirsten Gillibrand and Ruben Gallego backed the bill, pointing to added consumer protections and FDIC oversight as key reasons for their support.
“Many constituents of mine and of others already have money in stablecoin, and there are no rules,” said Senator Ben Ray Luján.
On the right, Senators Josh Hawley and Rand Paul voted no, Hawley for not barring Big Tech from issuing stablecoins, and Paul for what he saw as excessive red tape.
With Circle, the issuer of USDC, now publicly traded and stablecoin volumes hitting record highs, the GENIUS Act could bring billions in crypto under formal regulation. A House vote is expected later this month.
If signed into law, the U.S. would move ahead of global peers in regulating stablecoins, marking a dramatic turnaround for an industry once on the margins of finance.
Also Read: Warren Says Musk, Bezos May Misuse GENIUS Act for Stablecoins