The Genius Act – Regulatory Framework for Stablecoins Passed by US Senate

The US Senate passed the Genius Act on June 17, 2025, marking a pivotal moment for the cryptocurrency sector. The legislation, formally known as the Guiding and Establishing National Innovation for US Stablecoins (Genius) Act, introduces a regulatory framework for stablecoins—a subset of cryptocurrencies designed to minimize price volatility. While the broader market has often been characterized by turbulence, stablecoins represent a growing segment with significant institutional appeal.

The Act addresses long-standing concerns over the lack of clear regulations, which have hindered mainstream adoption. By providing oversight and support from the US Reserve, the Genius Act aims to legitimize stablecoin usage and foster innovation. Financial institutions and businesses trading in cryptocurrencies, particularly stablecoins, must now navigate these new compliance requirements.

Market participants view this as a overdue but welcome development. The regulatory clarity could accelerate adoption across payment systems, decentralized finance (DeFi), and cross-border transactions. However, the Act's broader implications for other cryptocurrencies—such as Bitcoin (BTC) or ethereum (ETH)—remain uncertain, as it focuses primarily on asset-backed stablecoins.