The U.S. Senate has approved the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (S. 394) with a vote of 68-30, forming the initial all-encompassing federal framework for fiat-backed stablecoins.
This bipartisan initiative was introduced by Senator Bill Hagerty and jointly sponsored by Senators Tim Scott, Kirsten Gillibrand, and Cynthia Lummis. It was passed under the official designation “Guiding and Establishing National Innovation for U.S. Stablecoins of 2025.”
“Today, with bipartisan support, the Senate approved its first significant piece of legislation this Congress with my bill—the GENIUS Act,” stated Senator Hagerty. “With GENIUS, the United States is a step closer to becoming the global crypto hub.”
The GENIUS Act imposes stringent regulations on payment stablecoins, mandating 1:1 dollar-backed reserves, monthly reports, audits, and clear federal or state licensing. It bans algorithmic coins and enforces strict controls on rehypothecation and commingling of reserves. Significantly, the legislation also revises existing securities laws to clearly indicate that compliant stablecoins are not securities—liberating them from SEC oversight.
Though the legislation targets stablecoins, Bitcoin advocates perceive it as a foundational victory.
Stablecoins serve as connections to Bitcoin, facilitating on-ramps, smoother transactions, and access for institutions. By legitimizing stablecoin infrastructure, the U.S. is indirectly bolstering the frameworks that support Bitcoin.
As the financial landscape evolves, reliable access points like dollar-backed tokens may assist in onboarding new Bitcoin users—particularly in international markets and corporate treasuries.
“The U.S. Senate has enacted the GENIUS Act — a groundbreaking stablecoin law that offers regulatory clarity, boosts consumer protection, and enhances the U.S. dollar’s online dominance,” remarked President Donald Trump’s AI & Crypto Czar David Sacks. “Thanks to President Trump for his guidance on crypto & Senator Hagerty for drafting the bill.”
The approval of the GENIUS Act might be the clearest indication thus far that the U.S. is gearing up for a stablecoin and Bitcoin-enabled future.
