The Senate has passed the GENIUS Act, the first federal bill to establish oversight for US dollar-backed stablecoins — a type of cryptocurrency designed to maintain a stable value.
This lays the groundwork for a sweeping regulatory approach to digital payment tokens. As reported by CNBC and Yahoo Finance, the legislation gave the Treasury oversight. Treasury Secretary Scott Bessent projected the US stablecoin market could grow to $2 trillion in the next few years.
Supporters of the bill claimed that the legislation “will 100% protect financial stability.” However, it notably exempted the sitting president from rules barring personal financial interests in stablecoins — an issue that has drawn ongoing political scrutiny.
Crypto meets Congress
Passed in a 68–30 vote, the GENIUS Act outlined a national regulatory framework for stablecoin activity in the United States. According to CNBC, the legislation was passed Tuesday and marked a significant milestone in how the federal government approached cryptocurrency.
The bill required full reserve backing in cash or US Treasury securities and adherence to anti-money laundering protocols. It permitted regulated banks, fintech companies, and large retailers to participate in the stablecoin ecosystem under a uniform federal standard.
The GENIUS Act assigned supervisory responsibilities to the Treasury Department and set the groundwork for issuing regulated digital dollars. If enacted, its structure could shape the use of stablecoins across both financial institutions and commercial platforms.
One rule, not for all?
While the legislation prohibited members of Congress and their families from profiting off stablecoins and other digital assets, the same restriction did not apply to the president or vice president.
Senate Democrats attempted to include a clause that would have barred the president from holding or profiting off stablecoins, but the proposal was rejected. Senator Jeff Merkley criticized the outcome, accusing Republicans of “rubberstamping Trump’s crypto corruption” and saying GOP lawmakers refused to hold a vote on the ethics clause.
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Green lights and red flags
Major financial institutions and retailers were already exploring how the new rules could affect their digital payment strategies. Bank of America CEO Brian Moynihan confirmed ongoing internal discussions regarding the issuance of stablecoins. Additional reports indicated that several major banks had considered launching a shared network.
According to Yahoo Finance, both Amazon and Walmart considered similar moves. However, a Walmart spokesperson stated that the company was neither testing nor planning to release its own stablecoin at that time.
Bessent’s market projection, paired with mounting institutional interest, suggested that the sector could see accelerated growth if the legislation were to become law.
Opposition remained, particularly among Democratic lawmakers concerned about the influence of technology firms. Senator Elizabeth Warren and others raised red flags about potential regulatory loopholes and conflicts of interest.
Supporters of the bill argued that its provisions included strict consumer protection. Circle’s Dante Disparte praised the bill, saying it “will 100% protect financial stability,” referencing penalties tied to failed audits or failure to disclose reserves.
As the Senate advances stablecoin legislation, Trump is eyeing the bigger prize. Read TechRepublic’s coverage on his push to make the U.S. the crypto capital.