GENIUS Act Moves Forward, Paving the Way for Stablecoins in U.S. Financial System
The GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—is one step closer to becoming law after passing the Senate in a 68–30 vote on Tuesday. If fully approved, the legislation could make stablecoin issuers key players in the U.S. economy.
The bill sets out a clear regulatory framework for stablecoins, including rules on how they must be backed and requirements to comply with anti-money laundering laws. It now moves to the House of Representatives for further consideration.
Industry leaders say the Senate vote sends a strong signal to traditional financial institutions and may accelerate stablecoin adoption across banks and payment networks.
“Clear rules and legal recognition are essential for stablecoins to function as reliable settlement tools,” said Katalin Tischhauser, head of investment research at Sygnum Bank. She noted that large banks are already exploring stablecoin use for payments and settlements, particularly with tokens issued on private blockchains.
Andrei Grachev of Falcon Finance added that if stablecoin issuers begin holding large amounts of U.S. Treasurys, it could shift their role from niche assets to central players in the economy.
Alex Buelau, co-founder of blockchain firm Rayls, said the legislation could finally bring clarity to an industry that has operated in a regulatory gray area. “Now that we have direction, institutions won’t hesitate to move forward, especially for cross-border payments and 24/7 settlement,” he told Cointelegraph.
The GENIUS Act is seen as one of several policy shifts fueling optimism for crypto markets in 2025, alongside moves like President Trump’s recent support for Bitcoin reserves.
Featured image from: cointelegraph.com