{"id":13206,"date":"2025-06-18T10:55:41","date_gmt":"2025-06-18T08:55:41","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=13206"},"modified":"2025-06-18T10:55:41","modified_gmt":"2025-06-18T08:55:41","slug":"u-s-senate-advances-genius-act-for-stablecoin-regulation","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/06\/18\/u-s-senate-advances-genius-act-for-stablecoin-regulation\/","title":{"rendered":"U.S. Senate Advances GENIUS Act for Stablecoin Regulation"},"content":{"rendered":"

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The U.S. Senate has approved the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (S. 394)<\/a> with a vote of 68-30, forming the initial all-encompassing federal framework for fiat-backed stablecoins.<\/p>\n<\/p>\n

This bipartisan initiative was introduced<\/a> 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.”\u00a0<\/p>\n

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The United States Senate has passed the GENIUS Act\ud83c\uddfa\ud83c\uddf8<\/p>\n

\u2014 Bo Hines (@BoHines) June 17, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

\u201cToday, with bipartisan support, the Senate approved its first significant piece of legislation this Congress with my bill\u2014the GENIUS Act,\u201d stated Senator Hagerty<\/a>. \u201cWith GENIUS, the United States is a step closer to becoming the global crypto hub.\u201d\u00a0<\/p>\n

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\u2014liberating them from SEC oversight.\u00a0<\/p>\n

Though the legislation targets stablecoins, Bitcoin<\/a> advocates perceive it as a foundational victory.\u00a0<\/p>\n

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.\u00a0<\/p>\n

As the financial landscape evolves, reliable access points like dollar-backed tokens may assist in onboarding new Bitcoin users\u2014particularly in international markets and corporate treasuries.\u00a0<\/p>\n

\u201cThe U.S. Senate has enacted the GENIUS Act \u2014 a groundbreaking stablecoin law that offers regulatory clarity, boosts consumer protection, and enhances the U.S. dollar’s online dominance,\u201d remarked<\/a> President Donald Trump\u2019s AI & Crypto Czar David Sacks. \u201cThanks to President Trump for his guidance on crypto & Senator Hagerty for drafting the bill.\u201d<\/p>\n

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<\/a>.\u00a0\u00a0\u00a0<\/p>\n<\/div>\n