U.S. House Passes GENIUS Act Establishing Stablecoin Regulations

The U.S. House of Representatives has passed the GENIUS Act, a bipartisan bill establishing a comprehensive regulatory framework for stablecoins that requires full asset backing and bans algorithmic stablecoins. The legislation sidelines the SEC and CFTC from direct oversight, instead focusing on transparency, compliance, and consumer protections, with issuers mandated to hold high-quality liquid assets equal to their token liabilities. The act aims to modernize the payment system, strengthen the U.S. dollar's role in the global digital economy, and position dollar-backed stablecoins as competitive alternatives to global rivals like China's digital yuan. Senate Banking Committee Chairman Tim Scott praised the bill as a milestone that aligns with President Donald Trump's agenda to make the U.S. the crypto capital of the world, noting it is the first bipartisan digital asset legislation passed by both chambers of Congress. The bill now awaits President Trump's signature, which is expected imminently, marking a significant shift toward clearer, more coordinated digital asset regulation. Alongside the GENIUS Act, Congress also advanced the CLARITY Act, which seeks to define jurisdictional lines for digital asset trading venues, indicating a broader push to regulate the crypto market.