On June 18, 2025, the U.S. Senate approved the GENIUS Act, which establishes federal standards for stablecoin regulation, potentially reshaping the crypto market.
Overview of the GENIUS Act
The GENIUS Act was sponsored by Senator Bill Hagerty and co-authored by Senator Kirsten Gillibrand. It secured passage after intense bipartisan negotiations, introducing a federal framework for stablecoin issuers requiring reserve backing and transparency.
Market Reaction to the GENIUS Act
Market reactions are yet to fully materialize, but Senator Tim Scott emphasized the historical significance of the Senate's decision. He noted that the act sets crucial guardrails for crypto finance.
The Future of Stablecoin Regulation
The GENIUS Act represents the first comprehensive federal crypto legislation in the U.S., marking a significant shift from previous fragmented attempts. This act may encourage a more regulated and secure crypto environment that drives mainstream adoption.
The passage of the GENIUS Act marks an important milestone in stablecoin regulation in the U.S., potentially changing the market landscape and enhancing oversight.
