In a landmark move for the digital assets industry, the U.S. Senate passed the bipartisan GENIUS Act on June 17, 2025, by a margin of 68–30, creating the nation’s first federal regulatory framework for dollar-pegged stablecoins reuters.com.
If the bill clears the House and is signed by the President, stablecoin issuers will be required to maintain full backing in high-quality liquid assets—such as U.S. dollars and Treasury bills—and to conduct monthly public disclosures of reserve compositions. The legislation also enhances anti-money-laundering (AML) standards, mandates audits for issuers above $50B in circulation, and prioritizes consumer protections in the event of issuer bankruptcy reuters.com.
Proponents say the bill brings much-needed clarity and legal certainty to stablecoins, potentially unlocking widespread adoption in payments, e-commerce, and decentralized finance. Treasury Secretary Scott Bessent forecasts that the stablecoin market could grow to $2 trillion within a decade investopedia.com.
However, critics—including Senator Elizabeth Warren and consumer advocates—have expressed concerns over insufficient AML safeguards and potential loopholes that could allow Big Tech firms to issue their own stablecoins without proper oversight. The bill also notably exempts the President and Vice President from stablecoin restrictions, sparking ethical concerns awsj.com.
Next up, the House is expected to introduce amendments aimed at tightening fraud prevention measures, especially concerning non-bank crypto custodians. Observers anticipate the bill reaching the President’s desk by the August recess apnews.com.
📌 Why It Matters:
- Provides the U.S. crypto market with landmark federal regulation—a global first
- Offers issuers and users legal clarity, boosting institutional confidence
- Includes consumer protections and Texas-tier audit duties—offset by concerns over weakening AML coverage
