On June 17, 2025, the US Senate passed the GENIUS Act for stablecoin regulation, marking a significant step for the crypto industry.
Shift to Stablecoin Regulation
The Senate passed the GENIUS Act with strong bipartisan support, emphasizing the need for regulation in the rapidly growing digital finance market. The legislation aims to introduce necessary oversight in a sector projected to reach $3.7 trillion by 2030.
Financial Implications of the New Law
The regulation introduces new transparency measures requiring officials to disclose holdings over $5,000. This is expected to lead to institutional inflows into the stablecoin market, fostering trust and legitimacy in the market.
Market Expectations and Forecasts
Senator Bill Hagerty emphasizes the importance of a pro-innovation approach to keep the US competitive in the crypto industry. The legislation is expected to impact major tokens like USDT and USDC while influencing DeFi protocols reliant on stablecoin pairings.
The adoption of the GENIUS Act will mark a significant milestone for the growth and legitimacy of the stablecoin market, with expectations of increased institutional interest and greater liquidity.
