After a prolonged political battle, the Senate successfully advanced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act of 2025 on Monday night. If the landmark stablecoin bill clears final hurdles, it will rewrite crypto history in America, establishing the first comprehensive framework for stablecoin regulation.
Despite political pushback, the bill secured a 66-32 procedural vote on Monday night. Multiple Democrats reportedly voted in favour after amendments to address ethical concerns.
Political Backlash Against the GENIUS Act
Despite the introduction as a bipartisan bill, the GENIUS Act faced several political challenges. The Democrats protested alleged conflicts and corruption involving President Donald Trump and his family’s crypto empire. Notably, the Trump family-backed World Liberty Foundation’s (WLF) USD1 stablecoin became the centre of political battle, with critics alleging potential conflicts of interest.
Earlier this month, the US Senate failed to advance the stablecoin bill in a key procedural vote, with Democratic Senators asking for further amendments. Prominent leaders like Elizabeth Warren and Bernie Sanders criticized the bill, suggesting it could enable financial self-dealing by the President.
Next Steps for the US Stablecoin Bill
Now the GENIUS Act will move to the House of Representatives, where it will be reviewed and voted upon. The House has been working on its own stablecoin legislation, the STABLE Act, and experts believe that a reconciliation between the two bills may be necessary for regulatory clarity.
Last week, Senator Bill Hagerty claimed the Senate would pass the bill, sparking optimism. The bill has gained widespread support from the key industry leaders, including the XRP lawyer John Deaton, Federal Reserve Chair Jerome Powell, Coin Center CEO Jerry Brito, SEC chair Paul Atkins, and Coinbase CEO Brian Armstrong.
Key Aspects of the GENIUS Act
The act, if passed, can establish a comprehensive regulatory framework for stablecoins, which are a type of crypto that are pegged to stable assets like the U.S. dollar. The act will introduce guardrails to ensure stability for these digital assets, while also providing an official validation for them.
Some of the key provisions of the GENIUS Act include:
Issuers must maintain 1:1 reserves backed by U.S. dollars.
Federal supervision for large issuers with over $10 billion market cap.
Strict anti-money laundering (AML) and know-your-customer (KYC) protocols.
Prevention of potential monopolistic practices from major technology firms.
Implications for the Crypto Industry
The US Senate advancing the GENIUS Act is hailed as a milestone for the crypto industry. It offers the much-needed regulatory clarity and is likely to boost investor confidence. Major stablecoin issuers like Circle (USDC) and Tether (USDT) have also expressed support as the act can help integrate digital assets into the traditional financial systems.
As the U.S. moves toward formalizing stablecoin regulations, it joins a growing list of countries seeking to capitalize on the booming crypto industry. Brazil has also proposed strict rules for stablecoin transfers as part of its new regulatory framework. El Salvador, on the other hand, recently boasted a notional gain of $357 million from its Bitcoin Reserve.
Deekshith Pinto
Deekshith is a seasoned news editor with over a decade of experience in the news and media industry. He began his career as an engineer at Toyota but soon swapped tools for storytelling. After his master’s at Nalanda University, he joined Times Internet as a staff writer. Over the next few years, he served as the News Editor for Indian bureaus of multiple international platforms, mainly The Weather Channel and Business Insider. He scaled both these large platforms and mentored dynamic teams of young writers and content creators. His editorial instincts are driven by a passion for storytelling, a fascination with data, and just the right amount of chaos to keep things interesting.
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