The U.S. Senate has passed the long-debated GENIUS Act, a bipartisan bill that introduces a comprehensive regulatory framework for stablecoins, signalling a major shift in the country’s approach to crypto payments.
The legislation—short for Guiding and Establishing National Innovation for U.S. Stablecoins—cleared the Senate in a 68–30 vote. If enacted, it will govern the $250 billion stablecoin market, addressing oversight, consumer protections, and systemic risks for dollar-pegged digital assets.
Senator Bill Hagerty (R-TN), the bill’s lead sponsor, described it as a “paradigm shift” that would modernize the U.S. financial system. “Businesses and Americans alike will benefit from near-instant payments instead of waiting days or weeks. Stablecoins can bring our payment system into the 21st century,” Hagerty said on the Senate floor.
The bill’s path to passage was turbulent. Although it passed the Senate Banking Committee in March with cross-party support, Democrats temporarily blocked its advancement in May after disclosures that a $2 billion stablecoin investment—originating from a Trump-linked crypto firm—was backed by Abu Dhabi funds for use on Binance. The revelation prompted a call for stricter anti-corruption safeguards.
In response, bipartisan negotiations introduced new provisions: mandatory disclosures of stablecoin holdings above $5,000 for lawmakers and executive officials, enhanced bankruptcy protections for bank customers, and a directive for the Treasury to establish anti-money laundering rules for digital currencies.
Despite these additions, critics remain. Senator Elizabeth Warren (D-MA) condemned the bill as insufficient and rallied for more amendments. Republican Senators Rand Paul and Josh Hawley opposed the measure on ideological grounds—Paul citing regulatory overreach, Hawley voicing concerns about big tech’s role in finance.
Supporters argue that the GENIUS Act provides long-overdue clarity. Senator Kirsten Gillibrand (D-NY), who co-authored parts of the bill, warned that without federal action, the crypto space would remain a “wild West,” harming both consumers and U.S. competitiveness.
The bill now heads to the House of Representatives, where a similarly divided debate is expected.