The US Senate bill creates clear nationwide regulations for stablecoins for the first time – a key step toward legitimacy for dollar-pegged digital assets. The next step is for the proposal to pass through the House of Representatives.
The US Senate approved the “GENIUS Act” (Guiding and Establishing National Innovation for US Stablecoins) with a strong majority of 68:30. The law aims to provide a legal framework for USD stablecoins, including rules for 1:1 backing, monthly reserve reporting, and prioritized reimbursement for investors in the event of insolvency. The bill now heads to the House of Representatives for review before being presented to the President for signing, as reported by Reuters here.
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Why the GENIUS Act matters
Stablecoins have become a central bridge between traditional and digital finance – with a market capitalization of over USD 250 billion and a 22% growth rate in 2025. The GENIUS Act provides the first clear set of rules for the sector: only licensed issuers, strict backing requirements, and monthly transparency obligations.
In addition, the law protects consumers by ensuring that their funds receive priority treatment in bankruptcy proceedings – a particularly relevant point in light of the Terra-Luna crisis.
Reactions from business and politics
The crypto industry is celebrating the progress. Circle – issuer of USDC – saw its stock rise by 34%, as did Coinbase (+16%) following the announcement of the vote. Large financial institutions such as Visa and Mastercard also reacted, though their shares dipped slightly in the lead-up.
Supporters emphasize that the law enables responsible innovation and positions the US as a global leader in digital payments. Critics, however, warn that the law lacks sufficient anti-corruption measures and excludes the President from the ownership ban.
With the GENIUS Act, the stablecoin market could gain significant stability and reach. Corporations like Meta, Walmart, and financial institutions are expected to integrate their own dollar stablecoins more quickly once the law is finalized. At the same time, US Treasury markets could be affected by increased demand for liquid backing reserves.
