U.S. Senate Passes Landmark Stablecoin Bill
The U.S. Senate has taken a significant step in cryptocurrency regulation by passing the GENIUS Act, a bill aimed at creating a regulatory framework for stablecoins. The bipartisan vote was 68-30, with several Democrats joining most Republicans in support of the proposed federal rules.
Stablecoins are a type of cryptocurrency designed to maintain a constant value, typically pegged 1:1 to the U.S. dollar. They are commonly used by crypto traders to transfer funds between tokens and have seen rapid growth in recent years. Proponents argue that stablecoins could facilitate instant payments.
The bill, if signed into law, would require stablecoin issuers to back their tokens with liquid assets such as U.S. dollars and short-term Treasury bills. Issuers would also be required to publicly disclose the composition of their reserves on a monthly basis.
“It is a major milestone,” said Andrew Olmem, managing partner at Mayer Brown and former deputy director of the National Economic Council during Trump’s first term. “It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry.”
The crypto industry has been pushing for clear legislation on digital assets, arguing that it could lead to more widespread adoption of stablecoins. The sector spent over $119 million supporting pro-crypto congressional candidates in the last elections.
The bill now moves to the House of Representatives, which must pass its version before it can be sent to President Donald Trump’s desk for approval. The White House has expressed a desire to pass a stablecoin bill before August.
However, not everyone is pleased with the development. Critics, including Senator Elizabeth Warren, argue that the bill lacks strong anti-money laundering protections and could allow big tech companies to issue their own private stablecoins. The Conference of State Bank Supervisors has also called for “critical changes” to mitigate financial stability risks.
The passage of the bill marks a significant moment for the crypto industry, which has been seeking regulatory clarity. However, the journey is far from over, with potential changes looming in the House of Representatives.