GENIUS Stablecoin Bill Clears Senate, Heads to House

Highlights:

• GENIUS Act passes Senate with 51-23 vote, setting stablecoin rules for issuers.
• Bill requires full backing, yearly audits, and compliance for foreign stablecoin issuers.
• House must decide the next steps as stablecoin regulation moves toward final approval.

The Senate passed the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, with a 51-23 vote on June 17. This is the first time the Senate has advanced a clear set of rules focused on stablecoins. These digital assets are a fast-growing part of the cryptocurrency industry. It now moves to the House of Representatives, where lawmakers are also working on similar stablecoin rules.

The U.S. Senate passed the GENIUS Act about six weeks after Senator Bill Hagerty from Tennessee introduced it. It now goes to the House, where a similar plan is in progress. If the House agrees, the bill will go to President Trump.

The U.S. Senate has passed the GENIUS Act — landmark stablecoin legislation that provides regulatory clarity, enhances consumer protection, and extends U.S. dollar dominance online. Thanks to President Trump for his leadership on crypto & @SenatorHagerty for authoring the bill.

— David Sacks (@davidsacks47) June 17, 2025

GENIUS Act Sets Strict Rules for Stablecoin Issuers

The GENIUS Act requires all stablecoins to be fully backed by U.S. dollars or other highly liquid assets. Stablecoin issuers valued at over $50 billion will be required to complete annual audits to maintain transparency. The bill also covers international issuers such as Tether, mandating that they comply with U.S. regulatory standards. Additionally, it prevents non-financial public companies—such as Meta and Amazon—from issuing stablecoins unless they meet strict risk management and privacy rules. If a stablecoin issuer goes bankrupt, the legislation gives stablecoin holders “super-priority,” meaning they would be paid before any other creditors.

Bessent said stablecoins might grow to $3.7 trillion by 2030. He added on X that this growth is more likely if the GENIUS Act becomes law.

Recent reporting projects that stablecoins could grow into a $3.7 trillion market by the end of the decade. That scenario becomes more likely with passage of the GENIUS Act.

A thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back…

— Treasury Secretary Scott Bessent (@SecScottBessent) June 17, 2025

GENIUS Act Pushes Forward, But House Path Remains Unclear

Ahead of Tuesday’s vote, Senator Hagerty stated that the United States is taking a major step toward becoming a global leader in the cryptocurrency space. He added that when the GENIUS Act becomes law, people and businesses will be able to make payments much faster—within seconds instead of waiting days or weeks.

The GENIUS Act first failed a Senate vote last month. Many Democrats opposed it due to President Donald Trump’s links to the crypto industry. The Trump family owns a big part of World Liberty Financial, which launched its own USD1 stablecoin in March. It remains uncertain whether the bill will gain enough support to pass in the House. Republicans have only a small lead there.

Next, the House must choose how to proceed. In April, the House Financial Services Committee approved its own bill called the Stablecoin Transparency and Accountability for a Better Ledger Economy Act. But that bill hasn’t yet reached a full House vote. According to Jennifer Schulp from the Cato Institute, House lawmakers might decide to support the Senate’s GENIUS Act instead of pushing their own bill forward. Some lawmakers want to combine the stablecoin bill with a larger crypto bill, but that may be hard to do. President Trump has said he wants a stablecoin bill ready for him to sign by August.