The U.S. Senate passed the GENIUS Act with a vote of 68 in favor and 30 against. The bill will be submitted to the House of Representatives, which will decide whether to advance its own stablecoin bill or adopt the Senate's version, with a vote expected in the coming weeks.
The U.S. Senate has passed stablecoin legislation, establishing regulatory rules for Cryptos pegged to the U.S. dollar, marking a milestone victory for both the crypto community and Trump.
On June 17 local time, the U.S. Senate passed the GENIUS Act with a vote of 68 in favor and 30 against. Analysts claim that this voting result is the most concrete return the Crypto Industry received after investing hundreds of millions of dollars to elect a "crypto-friendly" Congress. The crypto giants that invested heavily in last year's elections have already developed similar plans for the 2026 midterm elections.
Tim Scott, the Republican Chairman of the Senate Banking Committee from South Carolina, stated in a statement on Tuesday that this legislation "brings clarity to an industry that has long been shrouded in uncertainty."
The formal name of the bill is the "Guiding and Establishing American Stablecoin National Innovation Act" (GENIUS), which will be submitted for a vote in the House of Representatives next. The House will decide whether to adopt the Senate version or push its own stablecoin bill, the "STABLE Act," with differences regarding regulation and treatment of foreign issuers.
The trillion-dollar track under the new rules: who are the winners?
According to previous reports by Wall Street, the new regulations stipulate that stablecoins pegged to the dollar must hold short-term government debt or similar products as reserves and are subject to oversight by state or federal regulatory agencies in the U.S. It is noteworthy that these stablecoins will not be protected by federal deposit insurance.
According to media reports, this new regulation opens the door to opportunities for multiple industries:
Retailers and the payment Industry: Industry supporters hope that stablecoins can become a mainstream payment method. Retailers have welcomed the bill, believing it provides a cheaper and faster transaction processing method than traditional bank products like credit cards and checks.
Large Banks: Although small banks are concerned about deposit outflows and a tightening credit channel, large banks are considering issuing their own stablecoins to profit from the interest generated by their reserves. Stablecoins have become a lucrative business, with leading issuer Tether Holdings SA earning billions through its reserves.
Technology and other non-financial giants: If the bill ultimately becomes law, technology companies and other large non-financial enterprises may also issue their own stablecoins, which could disrupt the long-standing barriers between finance and commerce.
The Game Before the Finish Line of Legislation
Despite breakthroughs in the Senate, the road to legislation is not yet complete.
Currently, the House is advancing its own legislation, which includes a more comprehensive measure aimed at regulating the broader Cryptos market. House lawmakers must now decide whether to directly adopt the Senate's bill or reach a compromise through negotiation.
Reports indicate that a House Republican aide stated that the bills on stablecoins and market structure are necessary to create a comprehensive and lasting framework for digital Assets, and they will continue to work with colleagues to promote the passage of both bills.
However, warnings from the Senate are also very clear. Senior Republican member of the Banking Committee, Senator Thom Tillis from North Carolina, warned the House not to modify the Senate's bill. He predicted that Democrats would block any changes.
If the House of Representatives sends it back after modification, it will be stillborn.
However, it has been reported that several Democrats, led by Senator Elizabeth Warren, believe that the stablecoin bill lacks sufficient protections for consumers and the financial system in the event of a publisher's collapse, potentially leading to customer losses and a demand for taxpayer bailouts. As a senior Democratic member of the Senate Banking Committee, Warren stated on Tuesday that the bill would "enhance the value of Trump's corrupt practices."
The finish line of this legislative marathon is just ahead, but the last mile is often the most treacherous.
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