18.06.2025 03:36

The US Senate has achieved a significant breakthrough in cryptocurrency regulation, passing the GENIUS Act—a landmark piece of legislation marking the first federal attempt to govern digital assets. This decisive move, supported by a bipartisan coalition including several Democratic senators, now puts considerable pressure on the House of Representatives to address the future of cryptocurrencies.

Republican Senator Bill Hagerty's bill, successfully navigating weeks of committee review, procedural votes, and a previous setback due to withdrawn Democratic support last month, finally cleared the Senate. Following a strong preliminary vote last week, the final passage was largely anticipated, with Senator Hagerty publicly acknowledging the senators who lent their support. The act represents an unprecedented moment in US history.

Driven by calls from the current presidential administration for clearer crypto legislation, the GENIUS Act mandates that stablecoins maintain full backing exclusively through US dollars or similarly liquid assets. Furthermore, annual audits are now required for stablecoin issuers exceeding a $50 billion market capitalization, extending these regulations to include foreign issuers as well.

Stringent conditions govern the issuance of stablecoins by major publicly traded corporations, notably preventing tech giants such as Meta and Amazon from entering this market unless they satisfy specific criteria related to financial risk management and user data protection. The act also prioritizes stablecoin holders in bankruptcy proceedings, guaranteeing "bankruptcy priority" to safeguard depositors’ funds, a provision mirroring protections afforded to traditional bank depositors.

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