The U.S. Senate passed the GENIUS Act on June 17, 2025, marking a significant milestone in stablecoin regulation. The act aims to set a federal foundation for the estimated $250 billion market.
Enactment and Objectives of the Act
The GENIUS Act was passed by the U.S. Senate with bipartisan support spearheaded by Senator Tim Scott, the Chairman of the Senate Banking Committee. It aims to establish the first comprehensive federal framework for stablecoins in the country. President Trump emphasized the significance of the bill's swift passage for financial innovation.
Impact on the Stablecoin Market
The legislation targets the $250 billion stablecoin market, affecting major U.S. dollar-backed tokens like USDT and USDC. New regulations will require issuers exceeding a $10 billion threshold to adhere to federal oversight, while smaller operators may continue under compatible state regulations. Algorithmic stablecoins remain outside this regulatory scope.
Reactions and Potential Consequences
Tim Scott stated: "Today is a bold step forward – not just for financial innovation, but for American leadership, consumer protection, and economic opportunity. With the GENIUS Act, we’re bringing clarity to a sector that’s been clouded by uncertainty." The passage potentially reshapes financial markets by providing much-needed regulatory clarity. Industry participants are monitoring for further guidance and market developments in response to this landmark legislation.
The passage of the GENIUS Act could reshape financial markets by providing necessary regulatory clarity. Industry participants are keenly awaiting further regulatory updates and potential consequences to adapt to these changes.
