US Senate Passes GENIUS Stablecoin Regulation Bill

The US Senate has passed the GENIUS Act, a landmark bipartisan stablecoin regulation bill, with a 68-30 vote, marking a historic step in legitimizing and regulating stablecoins within the financial ecosystem. This legislation requires stablecoin issuers to hold dollar-for-dollar reserves in liquid assets such as US dollars and short-term Treasury bills, mandates monthly public disclosures, and enforces anti-money laundering compliance. Supported by President Donald Trump and his administration, the bill aims to increase demand for US dollars and treasuries while encouraging mainstream adoption of stablecoins by retailers like Walmart and Amazon. The crypto industry, which invested over $119 million lobbying for pro-crypto candidates in the 2024 elections, views the bill as its first major legislative victory, potentially boosting institutional confidence and market stability. While Bitcoin experienced volatility due to escalating Middle East tensions, stablecoins like USDT and USDC saw significant trading volume spikes following the announcement. The bill now moves to the House for consideration before the August recess, with broad implications for digital currencies and traditional finance sectors, including major banks exploring stablecoin initiatives.