The Senate passed the GENIUS Act on Thursday, advancing landmark legislation that would establish the first comprehensive federal framework for regulating stablecoins and potentially unlock trillions of dollars in cryptocurrency market value.
The bill cleared a procedural hurdle with the required 60 votes and now heads to a full Senate vote before moving to the House of Representatives.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 was introduced by a bipartisan group including Sens. Tim Scott, R-S.C., Bill Hagerty, R-Tenn., Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y.
Stablecoins are digital currencies designed to maintain stable value by being pegged to assets like the U.S. dollar. The legislation aims to provide regulatory clarity for the $250 billion market while protecting consumers and maintaining dollar dominance in digital payments.
“The GENIUS Act will be passed by both chambers and signed into law within the first 100 days of President Donald Trump’s administration,” said Scott, chairman of the Senate Banking Committee.
David Sacks, Trump’s designated White House AI and Crypto Czar, told Bloomberg the legislation could expand the stablecoin market from $250 billion to trillions by encouraging traditional financial institutions to participate.
“I think you’d see traditional financial players getting involved in it,” Sacks said, noting that major corporations including Amazon and Walmart are reportedly considering stablecoin issuance.
Under the proposed framework, stablecoin issuers would operate under banking regulators’ oversight, undergo regulatory approval processes and submit to quarterly audits. The legislation would allow issuers to offer interest on holdings while requiring transparency and accountability measures.
Critics have questioned whether the proposed $100,000 daily fines for non-compliance provide adequate enforcement, particularly regarding potential conflicts between state and federal regulations.
The legislation positions the U.S. to compete globally as the European Union has already implemented comprehensive stablecoin regulations through its Markets in Crypto-Assets framework.
The bill’s passage would mark a significant shift from previous regulatory uncertainty in the crypto industry, potentially encouraging mainstream adoption of digital currencies while preserving the dollar’s international dominance.
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