Senate votes preliminarily in favor of the GENIUS Act regulating stablecoins
The GENIUS Act, a landmark legislation establishing the first federal regulatory framework for stablecoins in the United States, has been signed into law by President Donald Trump in July 2025 [1][4][5]. The bill, which passed both the U.S. Senate and House with bipartisan support, sets a comprehensive regime for the issuance and regulation of payment stablecoins.
The Senate passed the GENIUS Act on June 17, 2025, with a vote of 68–30, and the House followed suit on July 17, 2025, with a vote of 308–122 [1][4]. Key provisions of the act include mandatory compliance with the Bank Secrecy Act and anti-money laundering regulations, 1:1 reserves in low-risk assets, and licensing requirements for stablecoin issuers, who must be insured depository institutions or approved entities [2][3][5].
However, disagreements in Congress about incorporating provisions from an alternative bill, the STABLE Act, indicate some debate over the legislative content and regulatory approach [1]. Furthermore, the law's focus on traditional banking institutions may raise questions about regulatory capture or favoritism towards them compared to independent crypto entities [2][3].
Democrat Senator Gillibrand has been vocal about the need for family members involved in stablecoin issuance to comply with the law like everyone else [6]. She has also stated that the $TRUMP coin is illegal [7]. Notably, members of the Trump family are backers of World Liberty Financial, which issued the USD1 stablecoin [8].
The Senate approved a procedural vote for the GENIUS Act last night, but Senator Warren made comments against the bill on the floor, stating that its basic flaws remain unaddressed [9]. The vote required the support of 66 senators out of those present [10]. Early results from a poll showed that 75% of people felt there were conflicts of interest regarding the stablecoin bill and cryptocurrency [11]. However, the percentage of people seeing conflicts of interest has since dropped to 60% in the poll [12].
The $TRUMP memecoin has attracted foreign investors, with a UAE company chaired by the country's national security advisor buying $2 billion of the stablecoin [13]. Senator Gillibrand was seen having a strident discussion on the floor with Republican bill sponsor Senator Bill Hagerty [14].
The full Senate vote is still needed to pass the bill itself. With the GENIUS Act now law, the focus shifts to its implementation and potential impact on the stablecoin market. The law is expected to take full effect by November 2026 after federal and state authorities issue implementing rules [1]. Senator Mark Warner, who published comments in favour of the bill, stated that blockchain technology is here to stay, and American lawmakers should shape it [15].
References:
- CoinDesk
- Bloomberg
- The Hill
- Politico
- Reuters
- CoinDesk
- CoinDesk
- Bloomberg
- CoinDesk
- CoinDesk
- CoinDesk
- CoinDesk
- Bloomberg
- CoinDesk
- CoinDesk
- The GENIUS Act, a federal regulatory framework for stablecoins in the United States, has been signed into law, setting a comprehensive regime for the issuance and regulation of payment stablecoins in the banking industry.
- Key provisions of the GENIUS Act include mandatory compliance with anti-money laundering regulations, 1:1 reserves in low-risk assets, and licensing requirements for stablecoin issuers, who must be insured depository institutions or approved entities.
- Disagreements in Congress about incorporating provisions from an alternative bill, the STABLE Act, indicate some debate over the legislative content and regulatory approach in the politics sector.
- Senator Gillibrand has voiced concerns about potential conflicts of interest, particularly involving family members involved in stablecoin issuance and the Trump family's ties with a stablecoin issuer.
- With the GENIUS Act now law, the focus shifts to its implementation and potential impact on the stablecoin market, blockchain, and general-news, with experts offering insights into the future of crypto regulations in the finance and business world.
