Senate Passes GENIUS Act—A Watershed Moment for Stablecoins
On June 17, 2025, the U.S. Senate overwhelmingly approved the GENIUS Act in a 68–30 bipartisan vote—marking the first major crypto legislation to clear the Senate this session and establishing the groundwork for stablecoin
Why it matters
Regulatory clarity. The bill mandates that stablecoins be 1:1 backed by reserves (cash or Treasuries), enforce regular audits (notably for issuers over $50 billion), and makes compliant tokens legally distinct from securites.
Consumer & financial security. It enhances protections—priority for holders in bankruptcies, stricter anti-money laundering and national-security measures.
🔍 Behind the Bipartisan Vote
Bridging the divide A mix of 18 Democrats, including Senators like Gillibrand, Alsobrooks, and Gallego, joined Republicans after key amendments were added—bolstering ethics safeguards and consumer.
Lingering criticism Critics like Senators Elizabeth Warren and Jeff Merkley warned it could enable corruption, especially given the exemptions that leave the President and his family’s crypto interests (e.g. USD1 via World Liberty Financial). Warren argued the bill “turbocharges Trump’s corruption” by potentially allowing the president to “regulate his own financial product”
📌 What Comes Next: The Road to the House
House floor ahead. The bill now shifts to the Republican-controlled House, where it may be merged with the STABLE Act or modified—prompting another round of negotiations .
Priority timeline. The Senate hopes to pass both chambers before the August recess—including President Trump’s push to enact it pre-recess.
📈 Industry & Market Impact
Circle (USDC), Paxos, Ripple, and Tether (USDT) stand to benefit from a clear U.S. regulatory framework, although Tether’s foreign status may invite scrutiny.
Corporate stablecoins: With clarity, major players may fast-track launches—Amazon and Walmart previously had stablecoin pilots on hold.
Macro flows: Enhanced institutional confidence could drive growth in Treasuries (as reserve assets) and further crypto adoption across fintech and institutional corridors.
According to an X post from Treasury Secretary Scott Bessent: Recent reporting projects that stablecoins could grow into a $3.7 trillion market by the end of the decade. That scenario becomes more likely with passage of the GENIUS Act. A thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back stablecoins. This newfound demand could lower government borrowing costs and help rein in the national debt. It could also onramp millions of new users—across the globe—to the dollar-based digital asset economy. It’s a win-win-win for everyone involved.