US Senate Advances GENIUS Act: Major Boost to Crypto and Stablecoin Regulation

In a seismic shift in the stablecoin regulation, the US Senate has successfully advanced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act of 2025. In an attempt to rewrite crypto history, the landmark stablecoin bill is poised to clear its final hurdles, establishing the first comprehensive framework for stablecoin regulation.

Despite political pushback, the bill secured a 66-32 procedural vote on Monday night. Multiple Democrats reportedly voted in favour after amendments to address ethical concerns. Now, the Senate will debate and vote to pass the bill forward to the House. As this step only requires a simple majority, the supporters are optimistic about its passage.

As the stablecoin market takes another significant step, Senate Majority Leader John Thune criticized Democrats for “unnecessary delays.” He stated, “Stablecoin regulation is a bipartisan issue, and the GENIUS Act reflects bipartisan consensus…I hope that in the future we will be able to take up bipartisan legislation without Democrats creating these unnecessary delays.”

Political Backlash Against the GENIUS Act

Despite the introduction as a bipartisan bill, the GENIUS Act faced several political challenges. The Democrats protested alleged conflicts and corruption involving President Donald Trump and his family’s crypto empire. Notably, the Trump family-backed World Liberty Foundation’s (WLF) USD1 stablecoin became the centre of political battle, with critics alleging potential conflicts of interest.

Earlier this month, the US Senate failed to advance the stablecoin bill in a key procedural vote, with Democratic Senators asking for further amendments. Prominent leaders like Elizabeth Warren and Bernie Sanders criticized the bill, suggesting it could enable financial self-dealing by the President.

Next Steps for the US Stablecoin Bill

Once the full vote concludes after the debate on the Senate Floor, the GENIUS Act will move to the House of Representatives, where it will be reviewed and voted upon. The House has been working on its own stablecoin legislation, the STABLE Act, and experts believe that a reconciliation between the two bills may be necessary for regulatory clarity.

Last week, Senator Bill Hagerty claimed the Senate would pass the bill, sparking optimism. The bill has gained widespread support from the key industry leaders, including the XRP lawyer John Deaton, Federal Reserve Chair Jerome Powell, Coin Center CEO Jerry Brito, SEC chair Paul Atkins, and Coinbase CEO Brian Armstrong.

Key Aspects of the GENIUS Act

The act, if passed, can establish a comprehensive regulatory framework for stablecoins, which are a type of crypto that are pegged to stable assets like the U.S. dollar. The act will introduce guardrails to ensure stability for these digital assets, while also providing an official validation for them.

Some of the key provisions of the GENIUS Act include:

• Issuers must maintain 1:1 reserves backed by U.S. dollars.
• Federal supervision for large issuers with over $10 billion market cap.
• Strict anti-money laundering (AML) and know-your-customer (KYC) protocols.
• Prevention of potential monopolistic practices from major technology firms.

Implications for the Crypto Industry

The US Senate’s advancement of the GENIUS Act is hailed as a milestone for the crypto industry. It offers the much-needed regulatory clarity and is likely to boost investor confidence. Major stablecoin issuers like Circle (USDC) and Tether (USDT) have also expressed support as the act can help integrate digital assets into the traditional financial systems.

As the U.S. moves toward formalizing stablecoin regulations, it joins a growing list of countries seeking to capitalize on the booming crypto industry. Brazil has also proposed strict rules for stablecoin transfers as part of its new regulatory framework. El Salvador, on the other hand, recently boasted a notional gain of $357 million from its Bitcoin Reserve.