- The U.S. Senate has passed the GENIUS Act, the first major federal crypto bill, focused on regulating stablecoins.
- The bill requires full dollar-backing, annual audits for big issuers, and blocks tech giants like Meta from issuing tokens unless they meet strict rules.
- All eyes now turn to the House, where lawmakers must decide whether to support the GENIUS Act or push forward with their own version.
In a historic first, the U.S. Senate has officially passed the GENIUS Act, a major piece of crypto legislation focused on regulating stablecoins. With support from a handful of Democrats, the bill cleared its final vote on Tuesday, putting pressure on the House to now move the process forward.
Republican Senator Bill Hagerty, who sponsored the bill, thanked his colleagues during the vote. Things had been tense just weeks ago, when Democrats stalled earlier progress, but the final vote reflected a growing bipartisan interest in getting crypto regulation on the books—especially with President Trump’s administration pushing hard for it.
What’s in the GENIUS Act?
The bill lays out strict rules for stablecoin issuers. For starters, every stablecoin has to be backed 1:1 by U.S. dollars or super-liquid assets. Issuers with more than $50 billion in circulation? They’ll have to submit to annual audits. There’s also language on cross-border issuance and how foreign-based stablecoins will be handled.
Interestingly, big tech firms like Meta and Amazon won’t be allowed to issue stablecoins unless they meet tough standards tied to privacy and risk. And in the case of insolvency, stablecoin holders would get “super-priority” status, which basically means they’re first in line to get their money back.
Politics, Pressure, and the Path Forward
The road to this point hasn’t been smooth. Lobbyists from traditional finance firms like Bank of America tried to push back hard, especially against the idea of nonbanks issuing stablecoins. And Democrats raised eyebrows over foreign crypto issuers and anti-money laundering loopholes. The recent launch of a Trump-affiliated stablecoin didn’t help matters, drawing fresh criticism over potential conflicts of interest.
But with the Senate vote locked in, attention now shifts to the House. Lawmakers there have their own bill—the STABLE Act—but it hasn’t been voted on yet. There’s talk that they might just adopt the GENIUS Act instead to keep things moving.
President Trump, meanwhile, is eager to sign something before August. His advisors already gave the GENIUS Act their official thumbs up, saying they’d recommend he sign it if it hits his desk.
