Senate Passes GENIUS Act Stablecoin Regulation

The Senate passed the GENIUS Act with a 68-30 bipartisan vote, including support from 18 Democrats, after weeks of partisan gridlock and intense lobbying. The act establishes the first federal regulatory framework for stablecoins, requiring issuers to maintain adequate reserves and subjecting them to audits and financial oversight. It prohibits members of Congress and executive branch officials from profiting from stablecoins while in office, but does not impose similar restrictions on the president, a point of contention amid concerns about President Trump’s and his family's interests in crypto. Critics warn the bill lacks anti-corruption and national security safeguards, especially following recent foreign investments in Trump-linked crypto ventures. Supporters, including sponsors and Treasury Secretary Scott Bessent, view the bill as a foundation for U.S. leadership in digital finance. The GENIUS Act now advances to the House, where further negotiations and possible integration with broader crypto legislation are anticipated.