Senate Approves GENIUS Act for Stablecoin Regulation in $239B Expansion

The U.S. Senate passed the GENIUS Act, marking a significant step in stablecoin regulation, with a 68-30 vote.

This legislation introduces the country’s first stablecoin framework, potentially impacting major digital assets and stablecoin infrastructure.

Senate’s Embrace of GENIUS Act Spurs Market Change

The U.S. Senate passed the GENIUS Act, securing a crucial regulatory milestone for stablecoins. It establishes a federal framework, aiming to regulate and potentially expand the $239 billion stablecoin market.

Key supporters, including Sen. Kirsten Gillibrand, advocated for the bill amidst opposition mainly from Sen. Elizabeth Warren, who voiced concerns about potential corruption linked to Trump’s crypto interests. Sen. Kirsten Gillibrand (D-N.Y.), Co-Author of the GENIUS Act, stated, “This legislation is a crucial step forward in establishing a federal regulatory framework for stablecoins, promoting innovation while ensuring public trust.”

Stablecoin Regulation: Industry Reactions and Challenges

The act is expected to profoundly affect stablecoin entities such as USDT, USDC, and DAI, encouraging more structured institutional involvement. Clarity from this legislation may foster higher integration rates and market trust.

Industry reactions include support from the Independent Community Bankers of America, who commit to further collaboration with Congress. Nevertheless, regulatory agencies signal concerns over rapid stablecoin growth risks.

Historical Insights: GENIUS Act’s Expected Impact

Similar regulations, such as New York’s BitLicense and the EU’s MiCA, historically led to increased compliance costs yet augmented institutional adoption, setting precedents for the GENIUS Act’s potential effects.

Experts anticipate that given historical trends, clearer regulation might result in increased inflows into compliant assets while elevating the importance of regulated exchanges and infrastructure tokens like ETH.