U.S. Senate Advances GENIUS Act, Regulating Crypto Market
- U.S. Senate advanced the GENIUS Act, a regulation for stablecoins.
- The act aims to standardize the crypto market and improve transparency.
- The GENIUS Act was signed into law by President Trump in July 2025.
The U.S. Senate approved the GENIUS Act in June 2025, establishing comprehensive regulations for stablecoins and tokenized assets, which was later signed into law by President Trump.
The GENIUS Act’s passage marks significant federal involvement in crypto regulation, affecting market dynamics and asset classification, potentially increasing institutional participation and compliance in the industry.
The U.S. Senate advanced the GENIUS Act, marking significant regulatory steps for stablecoins on June 2025.
The legislation aims to standardize the crypto market, improve transparency, and affect industry compliance significantly.
GENIUS Act Becomes First U.S. Stablecoin Law
The U.S. Senate passed the GENIUS Act, establishing the first regulatory framework for stablecoins. It follows a House passage and was signed into law by President Trump in July 2025.
Federal agencies such as the SEC and CFTC are tasked with overseeing implementation. The CFTC’s press release details their role in the act’s execution. Key industry figures have voiced both support and concern over possible regulatory gaps, addressing fears that this could invalidate prior flexible compliance arrangements.
GENIUS Act Alters Crypto Compliance Standards
The GENIUS Act’s passage is expected to significantly alter crypto industry compliance and bring about stricter reserve requirements for stablecoins, potentially influencing institutional involvement.
Experts suggest that these regulations might lead to market adjustments as companies update their practices. Concerns remain over whether the act sufficiently aligns with existing securities laws. Amanda Fischer, Policy Director & ex-SEC Chief of Staff, Better Markets, expressed views on the adaptation, noting, “Codify the existing business models of these crypto companies … puts some rules and regulations around the offerings, but it much more bends to meet the company than it bends to meet existing securities laws.”
Comparing GENIUS Act to EU’s MiCA for Insights
Comparing the GENIUS Act to MiCA in the EU, which led to regulatory migrations, offers insight into potential U.S. market shifts towards compliance.
Historically, regulations have prompted price volatility and shifts in trading volumes, impacting how investors and crypto operators adapt to new compliance landscapes. The recent joint statement by federal agencies underscores the critical considerations in crypto-asset risk management which may further complicate these market shifts.
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