The House of Representatives will now decide whether to adopt its own proposal or the Senate’s version for the new stablecoin regulations.
The United States Senate has officially passed the GENIUS Act, marking another step toward establishing a federal regulatory framework for stablecoins. The final vote concluded with 68 in favor and 30 against, sending the bill to the House of Representatives for final approval in the coming weeks.
Republican Senator Bill Hagerty, sponsor of the bill, stated:
“The GENIUS Act establishes a pro-growth regulatory framework for payment stablecoins. This legislation will cement U.S. dollar dominance, protect consumers, and drive demand for U.S. Treasurys.”
New standards for stablecoins in the U.S.
The legislative proposal, officially titled the Guiding and Establishing National Innovation for US Stablecoins Act, sets strict legal requirements for stablecoin issuers. The bill mandates that every token must be fully backed by U.S. dollars or equally liquid assets (such as U.S. Treasurys), ensuring market stability and transparency.
Stablecoin issuers with a market capitalization exceeding $50 billion will be subject to mandatory annual audits, while foreign entities like Tether will be required to meet specific compliance rules to operate in the U.S. market.
Restrictions for Big Tech
One of the provisions of the GENIUS Act bans non-financial public companies — including giants like Meta and Amazon — from issuing stablecoins unless they meet stringent risk management and privacy standards. This measure aims to prevent potential conflicts of interest and concentrations of power in the digital currency sector.
In the event of an issuer’s insolvency, the bill grants stablecoin holders a “super-priority” status in bankruptcy proceedings, placing them ahead of other creditors in the repayment hierarchy.
Despite Senate approval, the GENIUS Act now faces a competing proposal in the House — the STABLE Act — which was advanced in committee last May. The two bills differ on key issues such as state versus federal oversight and the treatment of foreign stablecoin issuers. Reconciling these versions will be crucial before any legislation reaches President Trump’s desk for final signature.
