The US Senate has passed the GENIUS Act, the first federal framework for US dollar-pegged stablecoins, marking a major step toward integrating digital dollars into the broader financial system. The legislation grants expansive regulatory authority to the Treasury Department and sets standards around reserve backing, audits, and compliance, while opening the door for banks, fintechs, and large retailers to issue their own stablecoins.
Passed by a 68–30 vote, the bill’s approval reflects rising political momentum behind crypto, following a US$250 million industry campaign to elect a pro-digital asset Congress. The legislation now moves to the Republican-held House, where a competing version proposes splitting oversight across multiple agencies. Key differences—particularly around regulatory control—will need to be resolved before the law can take effect.
Stablecoins, pegged to real-world assets like the US dollar, are already challenging traditional payment systems. Firms including Shopify, Bank of America, and JPMorgan are piloting stablecoin-based products, while Amazon and Walmart are reportedly exploring their own offerings. The GENIUS Act includes provisions restricting Big Tech from directly issuing stablecoins unless they partner with regulated financial institutions, aiming to limit concentrated market power.
Democrats were unable to add a provision barring presidential profits from digital assets. Recent financial disclosures show President Trump earned at least US$57 million from crypto ventures in 2024 and holds digital assets potentially worth nearly US$1 billion. His deepening involvement—from token sales to ETFs and mining—highlights the growing convergence of politics and digital finance.
