The U.S. Senate has voted 69–31 to advance the GENIUS Act, a significant step toward regulating stablecoins, cryptocurrencies pegged to stable assets like the U.S. dollar. This vote initiates a detailed amendment process where senators can propose changes to the bill.
Stablecoin issuers must maintain one-to-one reserves with U.S. dollars or similarly liquid assets, ensuring each stablecoin is backed by tangible assets. Only authorized entities, such as banks or qualified non bank institutions, can issue stablecoins, subject to federal or state regulation.
The bill includes measures to enhance consumer safeguards, enforce anti-money laundering rules, and prevent foreign stablecoin issuers from operating in the U.S. without compliance.
The Senate’s advancement of the GENIUS Act follows a 66–32 cloture vote on Monday, which cleared the way for the current vote. The bill, once opposed by Senate Democrats just two weeks ago, has gained renewed momentum.
Senator Bill Hagerty, who introduced the bill, expressed optimism, saying he looks forward to making history by passing legislation that would establish a clear legal framework for stablecoins in the U.S. and solidify America’s position as a global innovation hub.
In the meantime, market trends persist as Ripple is said to be negotiating the acquisition of Circle, the issuer of the second-largest stablecoin, USDC. This may redefine the stablecoin market, particularly as Circle also considers a possible IPO.
The GENIUS Act remains to be voted on by the U.S. House of Representatives before it can be enacted into law. When or if it might reach former President Donald Trump’s desk is still undetermined.
Also Read: US Senate Advances GENIUS Act to Regulate $250B Stablecoins
