BREAKING: Senate Passes GENIUS Act—Stablecoin Regulation Era Begins
The crypto Wild West just got a sheriff. The GENIUS Act cleared its final Senate hurdle today, paving the way for the first comprehensive stablecoin oversight framework in U.S. history.
Buckle up, DeFi degens—the regulators are coming.
What’s in the bill?
While full text isn’t public yet, insiders confirm the legislation will require stablecoin issuers to maintain 1:1 reserves (shocking, we know) and submit to regular audits. No more "trust me bro" collateral claims.
Why it matters
This could finally bring institutional players off the sidelines—BlackRock’s been eyeing stablecoins like a kid outside a candy store. Meanwhile, Tether’s lawyers are probably working overtime.
The fine print
The bill gives the Fed and Treasury shared oversight authority. Because nothing says "efficiency" like interagency turf wars.
One banking lobbyist already called it "innovation-friendly"—which in Washington-speak means "we watered it down enough to avoid crashing the market."
Strap in for the real show: watching crypto bros suddenly discover the joys of compliance paperwork.
Greenlight for Stablecoins
The GENIUS Act was introduced by Senator Bill Hagerty in February to regulate the $260 billion stablecoin market. Speaking after the vote on Tuesday, Hagerty said:
“This is going to open the door for innovation in America like we’ve never seen before. This is an inflection point moving the USA into the digital age,”
He added that the bill was the first step in making sure that the dollar remains the dominant currency of the world. By moving payments onto the blockchain, this will create more efficiency and take a lot of the cost out of the system, he added.
The GENIUS Act has PASSED in the Senate! pic.twitter.com/aWEgYKXNgf
— Senator Bill Hagerty (@SenatorHagerty) June 17, 2025
Treasury Secretary Scott Bessent was also onboard, saying that “Stablecoin legislation backed by US Treasuries or T-bills will create a market that will expand US dollar usage via these stablecoins all around the world.”
US Senate Committee on Banking, Housing, and Urban Affairs Chairman Tim Scott called it a historic day for our nation.
“After voting on 40 amendments […], we were able to forge a piece of legislation that focuses on the marketplace.”
The legislation requires stablecoins to be fully backed and for issuers to undergo regular security audits and approval from federal or state regulators. It also imposes limitations on algorithmic stablecoins and those without full backing.
NEW: The GENIUS Act has officially passed the Senate.
I caught up with @BankingGOP Chair @SenatorTimScott after the vote. He called it a “historic day for our nation” and said the focus now shifts to market structure.
“Let’s get this party started.” pic.twitter.com/4U1dGQoTl2
— Eleanor Terrett (@EleanorTerrett) June 17, 2025
It also opens the door to a “broader range of issuers,” including banks, fintech firms, and major retailers or tech giants looking to launch their own stablecoins or integrate them into existing payment systems, reported CNBC.
Democrats in Opposition
Nevertheless, several Democrats were against the bill and tried to force amendments to it before the vote.
Democrats tried to amend the bill to prevent President TRUMP and his family from profiting off crypto ventures. However, the final legislation only prohibits members of Congress and their families from doing so.
Related legislation, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, is also making its way through Congress.
