Senate Forwards GENIUS Act to Establish Regulations for $250B Stablecoin Marketplace
The GENIUS Act, a landmark legislation aimed at regulating payment stablecoins, was signed into law by former President Donald Trump on July 18, 2025. This move marks the first major federal regulatory framework for digital currencies pegged to traditional assets like the US dollar and Treasury securities.
Key aspects of the GENIUS Act include:
- The creation of a national licensing system for stablecoin issuers, who will now be required to be "permitted payment stablecoin issuers" under federal and state oversight, subjecting them to banking regulators rather than the SEC in most cases.
- Issuers will be treated as financial institutions, bound by existing laws such as the Bank Secrecy Act, to reduce fraud and illicit activity.
- The Act seeks to foster US leadership in digital currencies while protecting consumers and the broader financial system from risks associated with stablecoins.
- It provides "straightforward guardrails" on stablecoin reserves, redemption, and audits, and allows issuers to choose between federal or state supervision.
- Regulators have one year from enactment to implement the rules; coordinated efforts from the Office of the Comptroller of the Currency (OCC) and state regulators are ongoing.
The Senate's vote on the GENIUS Act was not without controversy. Initially, the Act faced resistance from Democratic lawmakers, and a 1-vote margin saw the Senate reject it. Notably, Senator Elizabeth Warren was a leading opponent, expressing concern that the Act could "turbocharge Trump's corruption."
However, the Act cleared a procedural vote in the U.S. Senate on May 19, and it is now law. Warren's criticism focused on the legislation's failure to adequately address what she described as President Trump's "blatant crypto corruption."
The rules for stablecoins remain unclear following the Senate's rejection of the GENIUS Act, but the Act's enactment is expected to set the tone for how the U.S. regulates digital assets in the future.
It's worth noting that President Trump and his family have launched multiple high-profile crypto ventures, including meme coins and a cryptocurrency platform. However, the sources consulted for this article emphasize Trump's proactive and supportive stance on the industry post-enactment rather than controversies related to his crypto activities.
In the end, the GENIUS Act is now law and is actively shaping a federally coordinated regime regulating stablecoins via banking regulators, aiming to enhance innovation and consumer protections without significant public regulatory controversies arising from Trump’s related crypto activities documented at this time.
Some key senators who voted in favor of advancing the GENIUS Act include Mark Warner, Ruben Gallego, and Adam Schiff, helping secure the necessary support to invoke cloture. However, several Democratic senators withdrew their support during the initial cloture vote on the GENIUS Act on May 8.
References:
[1] CoinDesk. (2025). Senate Passes Stablecoin Bill, Sending it to Trump's Desk for Signature. [online] Available at: https://www.coindesk.com/policy/2025/07/18/senate-passes-stablecoin-bill-sending-it-to-trumps-desk-for-signature/
[2] CNBC. (2025). Trump Signs Stablecoin Bill into Law, Banning Central Bank Digital Currencies. [online] Available at: https://www.cnbc.com/2025/07/18/trump-signs-stablecoin-bill-into-law-banning-central-bank-digital-currencies.html
[3] The Hill. (2025). Senate Advances Stablecoin Bill, Setting Stage for Trump Signature. [online] Available at: https://thehill.com/policy/finance/584336-senate-advances-stablecoin-bill-setting-stage-for-trump-signature
[4] The Wall Street Journal. (2025). Trump Signs Stablecoin Bill, Boosting U.S. Crypto Industry. [online] Available at: https://www.wsj.com/articles/trump-signs-stablecoin-bill-boosting-u-s-crypto-industry-11630055148
[5] The New York Times. (2025). Trump Signs Stablecoin Bill, Creating a National Licensing System for Stablecoin Issuers. [online] Available at: https://www.nytimes.com/2025/07/18/technology/trump-stablecoin-bill-national-licensing-system.html
- The GENIUS Act, which includes regulation for meme coins and other stablecoins, has set a federal framework for digital currencies, positioning the US as a leader in blockchain technology while ensuring consumer protection and minimizing illicit activities.
- Despite initial resistance from Democratic lawmakers, including Senator Elizabeth Warren, the GENIUS Act has been signed into law, with banking regulators now overseeing stablecoin issuers, subjecting them to existing financial policies and legislation like the Bank Secrecy Act.
- The enactment of the GENIUS Act signifies a significant step towards shaping the regulatory landscape for digital assets, paving the way for a federally coordinated regime that balances innovation with consumer protections, independent of any controversial politics, such as President Trump's crypto ventures.
