On June 18, 2025, the US Senate passed the GENIUS Act, regulating stablecoins. Its successful enactment could enhance market confidence and influence legislation in this sector.
GENIUS Act Passes Senate with Bipartisan Support
The US Senate approved the GENIUS Act regarding stablecoins with bipartisan backing. This landmark decision followed sponsorship efforts by Hagerty, Lummis, and Gillibrand. Prediction platform Polymarket indicates an 89% chance of the bill becoming law by 2025. This demonstrates political commitment to integrating stablecoins into the financial system.
Legislation Expected to Boost Institutional Participation
The legislation is anticipated to affect stablecoins, ETH, and DeFi protocols by providing regulatory clarity. This may inspire increased institutional participation and support market stability. If enacted, the bill strengthens the U.S.'s position in fintech by establishing a federal regulatory precedent for stablecoin management, potentially encouraging crypto industry growth.
Bill Positioned to Increase TVL in U.S. DeFi
This event marks a significant departure from previous attempts, like the Lummis-Gillibrand Responsible Financial Innovation Act from 2022, which failed to advance to Senate approval. Based on market trends, the bill could lead to increased TVL and liquidity flow into U.S. DeFi protocols, reflecting higher investor confidence in stablecoin-backed operations.
The passage of the GENIUS Act by the US Senate could significantly impact the stablecoin market and the overall development of the cryptocurrency sector, increasing the level of trust and participation from institutional investors.
