U.S. Senate Passes GENIUS Act Regulating Stablecoins – Coincu

The Senate passed the GENIUS Act on June 18, 2025, in Washington D.C., with 68 votes in favor and 30 against, establishing federal legislation for stablecoin regulation.

The new legislation establishes regulatory standards for dollar-backed stablecoins, potentially reshaping the crypto market and enhancing financial oversight.

GENIUS Act Targets Stablecoin Issuers with New Rules

The GENIUS Act was sponsored by Senator Bill Hagerty and co-authored by Senator Kirsten Gillibrand. It secured passage after intense bipartisan negotiations. Despite opposition from progressive lawmakers like Senator Elizabeth Warren, the bill gained substantial Democratic support. The act introduces a federal framework for stablecoin issuers, requiring reserve backing and transparency.

The enactment of the GENIUS Act introduces new regulatory compliance for stablecoin providers, focusing on anti-money laundering measures and capital adequacy. Stablecoin issuers such as Circle and Tether are expected to comply with stricter standards, increasing operational transparency and oversight.

“Today, the United States Senate passed the bipartisan GENIUS Act, marking a historic step forward in establishing critical guardrails for stablecoin innovation in our financial system.” Tim Scott, Ranking Member, Senate Banking Committee

Market reactions have yet to fully materialize, but Senator Tim Scott emphasized the historical significance of the Senate’s decision in a statement. He noted the act sets crucial guardrails for crypto finance, paving the way for potential future developments.

First Federal Crypto Bill Signals Market Shift

Did you know? The GENIUS Act is the first comprehensive federal crypto legislation approved in the U.S., marking a significant shift from previous piecemeal attempts.

According to CoinMarketCap, USDC’s current market value remains stable at $1.00, with a market cap of $61.49 billion. The stablecoin recorded a 24-hour trading volume of approximately $10.83 billion, reflecting a decrease of 11.84%. Price stability is evidenced by negligible fluctuation over recent periods.

The Coincu research team projects that this act could encourage a more regulated and secure crypto environment. Enhanced oversight might drive mainstream adoption, although initial adjustments by stablecoin issuers are anticipated. In the long term, compliance could foster trust and innovation in decentralized finance systems.