The U.S. Senate has passed the GENIUS Act, which represents a key regulatory step for stablecoins and sets clear requirements for their operators.
Overview of the GENIUS Act
The GENIUS Act was approved by the U.S. Senate on May 20, 2025, following a 66–32 vote. It mandates stablecoin issuers to maintain **one-to-one reserves** of high-quality liquid assets, establishing a solid oversight framework.
Impact on the Financial Industry
With the new law, both federal and state authorities gain the power to regulate major stablecoin players, potentially leading to shifts in operations for financial institutions and tech firms.
Perspective on Stablecoin Adoption
According to Rashan Colbert, Director of U.S. Policy at the Crypto Council for Innovation, the new law clearly outlines who is permitted to operate in this space. "There has been latent support within Congress, including within the Democratic caucus. They just haven’t had the opportunity to take meaningful votes," Colbert stated.
Thus, the passage of the GENIUS Act may enhance the confidence in stablecoins as a viable payment medium and their integration into the broader market on regulated platforms.
