Senate Approves GENIUS Act, Advancing Regulations for Stablecoins
The U.S. Congress has taken significant strides in regulating digital assets, with the GENIUS Act, a landmark legislation aimed at creating a comprehensive regulatory framework for payment stablecoins, now poised to become law.
The GENIUS Act, which passed the Senate with a vote of 68-30 and the House of Representatives with a vote of 308-122 on July 17, 2025, is now awaiting President Donald Trump's signature. The bill, sponsored by Senator Bill Hagerty, is expected to make the U.S. a global leader in crypto regulation.
The GENIUS Act establishes a comprehensive federal-state supervision and enforcement framework for payment stablecoin issuers, marking a significant federal regulatory milestone for the industry. It includes a prohibition on issuing payment stablecoins that will take effect around November 2026, with a transition period during which regulators must issue implementing rules and reports.
The bill's passage comes after a period of congressional disagreement regarding the inclusion of certain provisions from the STABLE Act, a companion legislation, into the GENIUS Act. While the STABLE Act played an important role in shaping discussions, it was ultimately the GENIUS Act that moved forward as the primary legislation.
Several House Democrats have flagged the omission of amendments regarding former President Trump's ties to World Liberty Financial, a crypto company that launched its own USD1 stablecoin this year, as a potential dealbreaker. The Senate version of the GENIUS Act did not include amendments addressing former President Trump's ties to World Liberty Financial, a point of contention for some lawmakers.
Meanwhile, the CLARITY Act, another bill designed to create a comprehensive regulatory framework for digital assets, has also advanced in the U.S. House Agriculture Committee. The CLARITY Act aims to provide a comprehensive regulatory framework for digital assets, not just stablecoins.
As the digital asset sector continues to evolve, major tech and social media players are exploring the possibility of issuing corporate-backed stablecoins. Senators Elizabeth Warren and Richard Blumenthal have formally questioned Meta about potential stablecoin initiatives, adding to the growing interest in this area.
Lawmakers anticipate renewed debate over the STABLE Act, with plans to introduce amendments aimed at strengthening oversight and clarifying definitions. The CLARITY Act reflects growing bipartisan consensus on the need for clearer oversight and defined jurisdiction in the digital asset sector.
In summary, the GENIUS Act, a significant piece of legislation in the digital asset landscape, is on its way to becoming law. As the U.S. Congress continues to address the regulatory challenges posed by digital assets, the focus remains on creating a clear market structure that ensures consumer protection and promotes innovation.
[1] [CNN](https://www.cnn.com/2025/07/17/tech/crypto-bill-passes-senate/index.html) [2] [Bloomberg](https://www.bloomberg.com/news/articles/2025-07-17/senate-passes-bipartisan-crypto-bill-to-regulate-stablecoins) [4] [The Hill](https://thehill.com/policy/finance/581859-house-passes-crypto-bill-to-regulate-stablecoins) [5] [Politico](https://www.politico.com/news/2025/07/17/crypto-bill-passes-senate-407724)
- The GENIUS Act, now awaiting President Donald Trump's signature, aims to make the U.S. a global leader in crypto regulation, with a focus on regulating payment stablecoins.
- The passage of the GENIUS Act, which includes a prohibition on issuing payment stablecoins from November 2026, marks a significant step in federal regulatory milestones for the digital assets industry.
- As major tech and social media players explore the possibility of issuing corporate-backed stablecoins, lawmakers anticipate renewed debate over the STABLE Act, with plans to introduce amendments aimed at strengthening oversight and clarifying definitions, reflecting the growing bipartisan consensus on the need for clearer oversight and defined jurisdiction in the digital asset sector.
