Key Takeaways
- The US Senate passed the GENIUS Act with bipartisan support.
- The House will decide between adopting the GENIUS Act or advancing its own STABLE Act.
- The GENIUS Act imposes stricter rules on stablecoin issuers and foreign entities like Tether.
The US Senate passed the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) with a 68–30 vote, marking the first major stablecoin legislation to clear the chamber.
The bill now proceeds to the House of Representatives, where lawmakers will decide whether to adopt the Senate’s version or advance their own STABLE Act.
A vote is anticipated in the coming weeks.
Key provisions and requirements
The GENIUS Act mandates that stablecoins must be fully backed by US dollars or highly liquid assets.
Issuers with market capitalizations exceeding $50 billion will be subject to annual audits.
The bill enforces compliance rules for foreign issuers, including Tether, and prohibits non-financial public companies—such as Meta and Amazon—from issuing stablecoins unless they meet strict risk and privacy standards.
In cases of insolvency, stablecoin holders would receive “super-priority” status in bankruptcy proceedings, ranking above other creditors.
Next steps and industry impact
The House must now reconcile differences between the GENIUS Act and its own STABLE Act, particularly regarding federal versus state oversight and treatment of foreign issuers.
Reconciliation is necessary before any legislation can be signed by President Trump, who has endorsed stablecoin regulation.
Treasury Secretary Scott Bessent commented:
With the GENIUS Act in place, projections of a $3.7 trillion stablecoin market by 2028 become increasingly likely.
The bill represents a significant move toward federal regulation of stablecoins in the US.
