17.06.2025 22:33
The United States Senate overwhelmingly approved the GENIUS Act on June 17th, passing it with a significant 68-30 vote. This landmark achievement marks the first major cryptocurrency bill to successfully navigate the Senate, representing a pivotal moment in the regulation of digital currencies within the United States.
Spearheaded by Republican Senator Bill Hagerty, the bill secured bipartisan support, garnering votes from both Democrats and Republicans. His expression of gratitude following the vote underscored the collaborative effort that led to its passage, a positive development given prior expectations based on the strong earlier support from a wide margin of senators. The final tally, achieved after extensive deliberation involving committee hearings, private negotiations, and procedural votes, culminated weeks of intense legislative activity.
Previously, an attempt to advance the bill had faltered due to Democratic opposition. However, the momentum shifted considerably, likely fueled by the Trump administration's ongoing push for regulatory clarity within the digital currency sector since the President's inauguration in January. A key component of the GENIUS Act mandates that stablecoins maintain full backing by U.S. dollars or readily liquid assets. Furthermore, issuers exceeding a $50 billion valuation will face the requirement of annual independent audits. The bill also extends its regulatory reach to encompass coins issued by foreign companies, intending to address loopholes related to offshore tokens.
Significantly, the GENIUS Act imposes restrictions on large technology companies. Tech giants like Meta and Amazon are prohibited from issuing stablecoins unless they strictly adhere to stringent financial safety and consumer data protection standards. Moreover, a crucial bankruptcy provision grants stablecoin holders "super-priority" status in bankruptcy proceedings, guaranteeing their priority in recovering funds in the unlikely event of an issuer's insolvency, a provision designed to also protect existing bank depositors from competing claims.
