U.S. Senate Advances GENIUS Act in Major Step Toward Stablecoin Regulation

The U.S. Senate voted decisively to advance the GENIUS Act, a pivotal bill establishing the first comprehensive regulatory framework for stablecoins. The 66-32 bipartisan vote clears procedural hurdles, setting the stage for full debate and potential amendments.

Senator Bill Hagerty’s legislation mandates 100% reserve backing in dollars or liquid assets for issuers, with enhanced scrutiny for those exceeding $50 billion in circulation. Foreign stablecoin operators face new oversight provisions designed to mitigate systemic risk.

This regulatory milestone comes amid growing institutional interest in dollar-pegged cryptocurrencies, though the text notably excludes direct mentions of specific stablecoins like USDT or USDC. Market observers anticipate Ripple effects across crypto exchanges and DeFi platforms as compliance timelines crystallize.