Key Takeaways
- The Senate passed the GENIUS Act, a comprehensive stablecoin regulation bill.
- President Trump praised the bill as 'pure genius' and urged the House for swift approval.
- The bill mandates 1:1 reserve backing, monthly audits, and Treasury oversight for stablecoins.
The U.S. Senate has passed the GENIUS Act, a groundbreaking federal framework for stablecoin regulation.
The bill, which received bipartisan support, mandates that stablecoins be backed 1:1 by reserves, require monthly audits, and comply with anti-money laundering regulations.
It opens the door for banks, fintechs, and retailers to issue stablecoins, bringing digital assets closer to mainstream finance.
President Donald Trump took to Truth Social to praise the bill:
The Senate just passed an incredible Bill that is going to make America the UNDISPUTED Leader in Digital Assets — Nobody will do it better, it is pure GENIUS! Digital Assets are the future, and our Nation is going to own it. We are talking about MASSIVE Investment, and Big Innovation. The House will hopefully move LIGHTNING FAST, and pass a “clean” GENIUS Act. Get it to my desk, ASAP — NO DELAYS, NO ADD ONS. This is American Brilliance at its best, and we are going to show the World how to WIN with Digital Assets like never before!
Oversight and next steps
The GENIUS Act centralizes oversight with the U.S. Treasury Department but faces further debate in the House, where some lawmakers are pushing for shared regulatory authority.
Critics have raised concerns about conflict-of-interest protections and the potential for the bill to lay groundwork for a central bank digital currency (CBDC). Proponents argue it will modernize finance and strengthen the dollar’s global position.
Treasury Secretary Scott Bessent has suggested the act could “fuel the demand for Treasuries.”
If enacted, the law could allow stablecoins to be integrated into mainstream banking.
The House’s decision will determine whether the GENIUS Act becomes law.
