Senate Passes GENIUS Act, Advancing Crypto Oversight Framework
The Senate approved sweeping new stablecoin legislation this week, advancing one of the most significant crypto regulatory efforts to date. The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) passed in a 68-30 bipartisan vote, earning the support of 18 Senate Democrats alongside broad Republican backing.
The legislation would establish a comprehensive federal framework for stablecoins—digital tokens pegged to the U.S. dollar—by imposing strict regulatory oversight on issuers. Under the bill, companies offering stablecoins to U.S. investors would be required to maintain fully backed reserves, comply with anti-money laundering (AML) and transparency standards, and submit to heightened regulatory supervision. The law also authorizes the introduction of capital requirements to ensure issuer solvency and systemic stability.
Senator Bill Hagerty (R-TN), who sponsored the bill, was joined by co-sponsors including Senators Cynthia Lummis (R-WY), Bernie Moreno (R-OH), Pete Ricketts (R-NE), Tim Scott (R-SC), and Dan Sullivan (R-AK). “The GENIUS Act establishes a pro-growth regulatory framework for payment stablecoins,” Hagerty said ahead of the vote. “This bill will strengthen U.S. dollar dominance, protect customers, drive demand for Treasurys, and ensure digital asset innovation happens here at home.”
The Senate vote follows weeks of partisan debate. In an earlier procedural vote last month, Senate Democrats raised objections tied to consumer protection and conflict-of-interest concerns. Controversy escalated after World Liberty Financial, a crypto firm linked to President Donald Trump’s business network, launched its own stablecoin, drawing scrutiny over potential political entanglements. Trump and members of his family have signaled growing interest in digital assets through various ventures.
Senator Elizabeth Warren (D-MA) and others pushed for tighter restrictions preventing elected officials and their families from owning or promoting stablecoin businesses. Following extended negotiations, several Democrats ultimately crossed the aisle to support the bill.
The legislation now moves to the House of Representatives, where its passage would send it to President Trump’s desk for final approval.