Shaping US Stablecoin Regulation: Senate Advances GENIUS Act

The regulatory landscape for digital assets in the United States continues to evolve rapidly, with a significant step taken recently towards establishing clear guidelines for stablecoins. The Senate has successfully advanced the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act, moving it closer to becoming law.

Senate’s Milestone Vote

On June 11, 2025, the U.S. Senate cast a crucial vote, signaling strong bipartisan support for the GENIUS Act, officially known as the “Guiding and Establishing National Innovation for U.S. Stablecoins” Act. The vote, which concluded 66-32, followed a successful motion for cloture filed by Senate Majority Leader John Thune on June 9, 2025. This procedural maneuver effectively cleared the path for the bill by preventing further delays from additional amendments, setting the stage for its subsequent consideration in the House of Representatives.

Diverging Views and Opposition

Despite significant bipartisan backing, the GENIUS Act has faced considerable opposition, particularly from some Democratic senators. An earlier attempt to advance the bill in May 2025 was stalled due to Democratic demands for amendments. During the June 11 session, Senator Elizabeth Warren reiterated her strong objections, criticizing the bill for being brought to a vote without any changes, even those with broad bipartisan consensus. She stated, “This bill was brought to a vote without a single change. Even amendments that received broad bipartisan support were not included in the document. […] While a strong stablecoin bill is the best possible outcome, this document is worse than no bill at all.” Her sentiments were echoed by other prominent Democrats, including Chuck Schumer and Amy Klobuchar, highlighting a split within the party, even as many Democrats joined Republicans in supporting the initiative.

Senate Majority Leader Thune advocated for the bill’s approval, aligning with President Donald Trump‘s broader vision of establishing the United States as a global leader in the cryptocurrency sector. However, a core part of the Democratic opposition stems from concerns that the GENIUS Act primarily safeguards the interests of the President’s personal crypto ventures, specifically citing platforms like World Liberty Financial and its associated stablecoin, USD1.

Navigating the House of Representatives

The journey for the GENIUS Act is anticipated to become more challenging as it moves to the House of Representatives. The House Financial Services Committee has already developed its own stablecoin initiative, the “Stablecoin Transparency and Accountability for a Better Ledger Economy” (STABLE) Act, which gained approval at the committee level in early April 2025. While both bills share common ground in their aims for stablecoin regulation, they contain distinct differences, particularly concerning the oversight of foreign stablecoin issuers. This suggests a potential need for reconciliation or negotiation between the two chambers to arrive at a unified legislative framework.

Key Provisions of the GENIUS Act

The GENIUS Act outlines stringent requirements for stablecoin issuers, focusing on asset promotion, reserve management, and consumer protection. Key provisions include:

Category	Requirement
Reserve Assets	100% reserves must be held in U.S. dollars or highly liquid assets.
FDIC Claims	Prohibition on claiming Federal Deposit Insurance Corporation (FDIC) protection for issuer products.
Bankruptcy Priority	Enhanced priority for stablecoin holders in the event of an issuer’s bankruptcy.
Compliance	Adherence to Bank Secrecy Act (BSA) provisions.
Foreign Issuers	Foreign issuers may operate in the U.S. but require close cooperation with government agencies and thorough vetting.
Reporting	Issuers must publish monthly reports detailing their reserves.
Audits	Companies with over $50 billion in stablecoin capitalization must undergo annual financial audits.
Regulatory Oversight	Issuers with up to $10 billion in stablecoin capitalization fall under general oversight; those exceeding this threshold are subject to the jurisdiction of the Federal Reserve (Fed) and the Office of the Comptroller of the Currency (OCC).

The Trump administration has openly supported the GENIUS Act. During a Digital Assets Summit held at the White House in March, President Trump expressed his ambition to sign two key pieces of legislation concerning stablecoin regulation and broader market structure before August. This aligns with his broader agenda to foster innovation and leadership in the digital asset space within the United States.