The GENIUS Act, recently passed by the U.S. Senate, focuses on stablecoin regulation and has received support from Donald Trump. This is the first legislation addressing this category of digital assets in the country.
GENIUS Act: Key Provisions
The GENIUS Act passed the Senate with a 68-30 vote and introduces the first set of rules for stablecoins—digital tokens tied to the U.S. dollar. It requires full 1:1 reserve backing, appropriate licenses, and stringent anti-money laundering measures. Additionally, the bill restricts how issuers can use reserves to prevent risky practices and protect consumers.
Speed of Passage Important for Trump and Senator Hagerty
Trump emphasized the need for swift passage of the bill, urging the House of Representatives not to make changes and to send it for signing. Senator Bill Hagerty, the bill's sponsor, supports this call and hopes to have the law signed before Independence Day. He warned that adding new components or merging with other bills could delay its approval.
Political Disputes Surrounding the Bill
Despite the bill's passage, some Democrats have voiced concerns. Senator Elizabeth Warren claimed the bill could benefit Trump’s family due to their ties to stablecoin projects, such as USD1. Others, like Senator Mark Warner, raised concerns but acknowledged that the U.S. cannot afford to fall behind in the global digital asset race.
The GENIUS Act has received broad support, and major institutions and banks are poised to enter the market once the rules take effect. Trump continues to underscore the importance of clear regulations and new investments, although political debates may persist.
