The Senate on Tuesday passed a groundbreaking bill that would establish the first federal regulatory framework for stablecoins, marking a major milestone for the cryptocurrency industry as it seeks legitimacy and oversight in Washington.
The bill, known as the GENIUS Act—short for “Guiding and Establishing National Innovation for US Stablecoins”—passed with a bipartisan vote of 68-30. Although it must still clear the House and receive President Trump’s signature to become law, industry leaders are already celebrating the bill’s rapid momentum as a win for crypto.
“I feel really good about [this bill],” said Dante Disparte, chief strategy officer and head of global policy and operations at Circle (CRCL), the largest U.S. stablecoin issuer.
Circle’s stock has skyrocketed roughly 400% since its public debut on June 5, underscoring investors’ bullish outlook on stablecoins amid mounting regulatory clarity.
Coinbase (COIN) chief legal officer Paul Grewal reacted on X, writing, “a year ago I would’ve thought this at best was a fever dream. Think for a moment on how far we’ve come.”
The GENIUS Act outlines how U.S. companies can issue and manage dollar-backed stablecoins used for payments. The bill includes a provision barring members of Congress and their families from profiting from stablecoins—but notably excludes President Trump and his family, a carve-out that has frustrated some Democrats and slowed earlier progress.
Trump, meanwhile, has deepened his financial ties to the sector. His new venture, World Liberty Financial, co-launched with his sons, recently debuted a U.S. dollar-pegged stablecoin called USD1 in partnership with BitGo.
Should the legislation pass the House, experts say it could unlock a flood of new stablecoin issuers, including major financial and retail players already weighing entry into the space.
“We’re working with the industry, working individually,” Bank of America (BAC) CEO Brian Moynihan said about the bank’s stablecoin plans during a Morgan Stanley conference last week.
Earlier this month, Bank of America and other major banks gathered to explore a shared stablecoin network. Separately, The Wall Street Journal reported that Amazon (AMZN) and Walmart (WMT) are also exploring potential stablecoin products.
The looming wave of corporate stablecoins could significantly disrupt traditional payments infrastructure. Merchants may look to bypass legacy card networks like Visa (V) and Mastercard (MA). Still, not all are ready to commit. “While we continuously explore new payment technologies in efforts to support our customers, we are not piloting any programs and do not currently have any plans in place to issue our own stablecoin,” a Walmart spokesperson told Yahoo Finance.
The bill would grant regulatory oversight to the Federal Reserve and the Office of the Comptroller of the Currency (OCC) for stablecoin issuers with $10 billion or more in assets. Smaller issuers would be supervised by state regulators.
All issuers would be required to hold reserves in cash or U.S. Treasurys, undergo regular audits, and publicly disclose reserve details and redemption procedures. The tokens must be redeemable at face value, like money market funds—but cannot pay interest.
Proponents say stablecoins offer a safe haven from crypto volatility and provide a more efficient way to store or move value by linking digital assets to the U.S. dollar. Their speed and programmability also make them appealing for global payments and financial inclusion.
“I think with the GENIUS Act, we actually have the right thing,” Disparte said. “You have every issuer, whether a bank, a credit union, or a non-bank, would have a common regulatory floor under which they would operate.”
Skeptics, however, worry about the potential for liquidity crises or investor panics. Disparte pushed back, insisting the bill provides full protection: “100% protect financial stability,” he said, pointing to criminal penalties for failing to disclose audits or reserve attestations. Consumer safeguards, he added, are embedded “through and through” in the legislation.
Some Democrats, including Sen. Elizabeth Warren, remain cautious, particularly about allowing tech giants like Amazon or Meta (META) to issue stablecoins. But Disparte emphasized that the bill requires such companies to obtain special clearance from a Treasury Department review board.
Treasury Secretary Scott Bessent has publicly backed the measure, telling lawmakers it could help the U.S. stablecoin market balloon to over $2 trillion by the end of 2028. The current global market is valued around $250 billion, according to DeFiLlama.
With Senate passage secured, lawmakers in the House may try to merge the bill with broader crypto regulation—a move that could complicate its path forward. Still, Trump has expressed a desire to sign stablecoin legislation before Congress adjourns for its August recess.
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