Senate approves initial vote on GENIUS Act for cryptocurrency regulation
The GENIUS Act for Stablecoins Clears Hurdles and Becomes Law
After a long and contentious journey, the GENIUS Act for stablecoins has finally become law in the United States. The bipartisan legislation, aimed at establishing a comprehensive federal regulatory framework for payment stablecoins, passed both the House of Representatives and the Senate with significant support.
Last night, the Senate approved a procedural vote for the Act, paving the way for its final passage. Sixty-six Senators voted in favor, 32 against, and two abstained.
The Act, signed into law by President Trump on July 18, 2025, mandates that only permitted payment stablecoin issuers—regulated either federally or by certain states—may issue such stablecoins. The law sets requirements for reserve backing, regulatory supervision, and a federal-state enforcement regime.
The new draft of the GENIUS Act includes wording to address stablecoins issued by BigTech firms, without imposing an outright ban. This draft, however, does not contain any massive changes from the previous version.
Senator Elizabeth Warren has expressed her disagreement with the bill, stating that its basic flaws remain unaddressed. Senator Mark Warner, on the other hand, argued that the bill is necessary to shape the future of blockchain technology, despite his concerns about the Trump family's use of crypto technologies.
The passage of the GENIUS Act comes amidst the rise of the $TRUMP memecoin, which has attracted foreign investors. However, it is important to note that the stablecoin, issued by World Liberty Financial, which has members of the Trump family as backers, is subject to the same laws as everyone else.
The regulatory agencies are now tasked with issuing implementing rules over the next year, with the enforcement provisions expected to take effect by late 2026 or shortly after final implementing regulations are issued.
The journey of the GENIUS Act was not without its challenges. In the House, procedural votes experienced some opposition and delays as holdouts sought to merge stablecoin regulation with other digital asset legislations. However, these were resolved after intervention by House leadership and President Trump.
In the Senate, Senator Gillibrand was seen having a strident discussion on the floor with Republican bill sponsor Senator Bill Hagerty. Despite these disagreements, the Act has managed to garner bipartisan support and move forward.
As the regulatory landscape for stablecoins in the United States continues to evolve, the GENIUS Act is poised to play a significant role in shaping this emerging industry.
[1] CoinDesk. (2025). The GENIUS Act: What You Need to Know. [online] Available at: https://www.coindesk.com/info/the-genius-act-what-you-need-to-know/
[2] The Hill. (2025). House Passes Stablecoin Bill After Procedural Hurdles. [online] Available at: https://thehill.com/policy/finance/593961-house-passes-stablecoin-bill-after-procedural-hurdles
[3] Politico. (2025). Trump Signs Stablecoin Bill Into Law. [online] Available at: https://www.politico.com/news/2025/07/18/trump-signs-stablecoin-bill-into-law-000726
[5] Bloomberg. (2025). What's in the GENIUS Act for Stablecoins. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-18/what-s-in-the-genius-act-for-stablecoins
- The passage of the GENIUS Act signifies a major shift in the legal landscape of stablecoins within the banking and finance industry, providing insights into the regulation of payment stablecoins.
- Despite Senator Elizabeth Warren's criticism, the bipartisan GENIUS Act has become law, setting requirements for reserve backing, regulatory supervision, and a federal-state enforcement regime for stablecoin issuers.
- The Act, believed to shape the future of the blockchain industry, includes a provision addressing stablecoins issued by BigTech firms without imposing an outright ban, but the draft does not contain any major changes from the previous version.
- As the Act is now law, regulatory agencies are tasked with issuing implementing rules over the next year, while the enforcement provisions are expected to take effect by late 2026 or shortly after final implementing regulations are issued.
- The General News outlets have covered the progress of the GENIUS Act thoroughly, reporting on its passage, policy implications, and potential effects on the blockchain and finance sectors, offering comprehensive insights into this new legislation.
