The US Senate has officially unveiled new rules for stablecoins with the passage of the GENIUS Act, which implements strict measures for transparency and consumer protection.
Key Provisions of the GENIUS Act
The GENIUS Act was passed by the US Senate with a vote of 68-30 on June 12, 2025. It requires full dollar backing and annual audits for stablecoin issuers exceeding a market cap of $50 billion. The aim of this legislation is to enhance transparency and consumer trust while working within a legal framework.
Market Impact of the GENIUS Act
The GENIUS Act introduces significant changes to the operational conditions for major stablecoin issuers such as Tether and Circle. The new legislation may increase institutional investments, as it will promote US assets as reserve holdings. Bipartisan support of the bill highlights the necessity of regulatory clarity, which may foster growth while protecting consumer interests.
Future of Cryptocurrency Regulation
Senate figures like Majority Leader John Thune emphasize the significance of this legislation in integrating cryptocurrencies into the mainstream economy. However, further efforts are ongoing to align this bill with regulatory norms. The GENIUS Act may represent the first significant legislative effort in the US to regulate stablecoins since the collapse of TerraUSD, underscoring its importance for the future framework of digital asset regulation.
The passage of the GENIUS Act represents a critical step in strengthening the regulatory framework for stablecoins in the US and may open new horizons for both domestic and international cryptocurrency regulation.
