The Senate voted to approve the GENIUS Act, an unprecedented piece of legislation that for the first time introduces federal regulations for U.S. dollar-backed stablecoins and establishes a framework for private companies to create digital dollars with government approval.
The bill received a vote of 68-30 in favor.
This marks a significant milestone for the cryptocurrency sector, which invested approximately $250 million into the 2024 campaign cycle to support what is now viewed as the most crypto-friendly Congress in U.S. history, as well as for President Donald Trump's extensive digital asset business.
“The GENIUS Act will serve to protect consumers, foster responsible innovation, and maintain the supremacy of the U.S. dollar,” stated Senator Kirsten Gillibrand, D-N.Y., one of the bill's sponsors.
Although it still faces challenges in the Republican-controlled House, its approval in the Senate indicates a pivotal moment — not only for the technology but also for its political influence.
The GENIUS Act, which stands for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, establishes industry standards, including full reserve backing, monthly audits, and compliance with anti-money laundering laws.
Furthermore, it opens opportunities for a wider array of issuers, such as banks, fintech companies, and large retailers wishing to develop their own stablecoins or incorporate them into existing payment systems.
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The legislation provides extensive authority to Treasury Secretary Scott Bessent, who mentioned in a Senate appropriations subcommittee hearing last week that the U.S. stablecoin market could expand nearly eight times to exceed $2 trillion within a few years.
The bill's approval was met with strong criticism from Senator Jeff Merkley, D-Ore., who accused Republicans of “rubberstamping Trump’s crypto corruption” and permitting the president to profit personally from government access.
Merkley had advocated for an amendment to prevent elected officials from benefitting from digital assets, but reported that GOP lawmakers blocked all attempts to bring it to a vote on the Senate floor.
In May, Senate Democrats introduced the “End Crypto Corruption Act,” led by Merkley and Minority Leader Chuck Schumer from New York, aimed at prohibiting elected officials and senior executive branch figures, along with their families, from issuing or endorsing digital assets.
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The GENIUS Act now moves to the House, which has its own version of stablecoin legislation called STABLE. Both bills disallow yield-bearing consumer stablecoins but differ on regulatory oversight.
The Senate’s bill centralizes regulation under the Treasury, while the House distributes authority among the Federal Reserve, the Comptroller of the Currency, and other entities. Harmonizing the two approaches may take considerable time, as noted by congressional aides.
Initially, the GENIUS Act was considered the most straightforward cryptocurrency legislation to pass, yet it took several months to reach the Senate floor, failed once, and ultimately passed only after intense negotiations.
“We thought starting with stablecoins would be the easiest route,” stated Senator Cynthia Lummis, R-Wyo., during her remarks at the Bitcoin 2025 conference in Las Vegas, which placed considerable emphasis on stablecoins.
“It has proven to be extremely challenging. I had no idea it would be this difficult,” she remarked.
Similarly, Senator Bill Hagerty, R-Tenn., expressed his frustration at the event: “It has been incredibly tough to get them to this point," referring to the 18 Senate Democrats who ultimately voted in support.