U.S. Senate Passes GENIUS Act, Setting New Rules for Stablecoins and Crypto Markets

The U.S. Senate approved the GENIUS Act in a 68-30 vote on June 17, marking a significant step toward regulatory clarity for digital assets. Republican Senator Bill Hagerty spearheaded the bipartisan effort, which faced earlier resistance but gained momentum under the TRUMP administration''s push for crypto-friendly legislation.

The act imposes strict reserve requirements for stablecoin issuers, mandating full backing by U.S. dollars or liquid assets. Large issuers exceeding $50 billion in valuation will face annual independent audits, while the bill simultaneously addresses regulatory gaps for offshore tokens.

Tech giants like Meta and Amazon face new barriers to stablecoin issuance unless they meet stringent financial and data protection standards. The legislation includes bankruptcy provisions that could reshape how crypto businesses operate in failure scenarios.