U.S. House Approves GENIUS Act to Regulate Stablecoins

The U.S. House of Representatives has approved the GENIUS Act on July 18, 2025, clearing the path for regulatory oversight of dollar-backed stablecoins. This bipartisan legislative success is crucial as the United States aims to lead in regulating payment stablecoins.

The GENIUS Act is pivotal for establishing regulatory frameworks protecting both consumers and financial systems. This development bolsters confidence among stablecoin issuers and investors.

U.S. Positions for Global Leadership in Stablecoin Regulation

The GENIUS Act’s approval marks a critical moment for cryptocurrency regulations. Sponsored by Senator Bill Hagerty [R-TN], the bill reflects intensive bipartisan negotiations spearheaded by House Speaker Mike Johnson [R-LA] and President Donald Trump. The House played a crucial role in packaging broader digital asset measures to promote regulatory coherence for dollar-backed stablecoins.

Financial markets reacted sharply, with Circle Internet’s stock initially dipping nearly 5% amid tensions. Stability returned as investors interpreted the act’s passage as a positive evolution for the stablecoin landscape. Circle, the USDC issuer, commended the bipartisan collaboration, emphasizing its importance for future financial integrity.

By endorsing a structured approach, the U.S. positions itself prominently on the global stage, reinforcing its regulatory leadership. This new direction outlines a path for secure and transparent digital transactions within the financial system.

Stablecoin Legislation: Market Stability and Historical Parallels

Did you know? The GENIUS Act’s bipartisan support mirrors historical regulatory efforts like the ’90s Cryptography Export Control reform, which similarly set the U.S. as a tech industry leader.

According to CoinMarketCap, USDC maintains a $1 price with a market cap of formatNumber(64725958783, 2) billion and a 1.65% market dominance. The stablecoin’s trading volume reached formatNumber(23720545811, 2) billion, reflecting robust activity amid its regulatory milestone. Recent price metrics reveal minimal fluctuations, highlighting its stability.

Experts from Coincu note this regulatory evolution could fortify USDC and similar stablecoins by ensuring aligned compliance with future global standards, enhancing market trust and investment. As agencies implement these frameworks, the focus remains on adaptable, innovation-friendly regulation.