U.S. Senate Passes GENIUS Act to Regulate Stablecoins

The U.S. Senate approved the GENIUS Act, a landmark bill establishing the first federal framework for stablecoin regulation. Passed with bipartisan support, the legislation imposes strict requirements on issuers, reserves, and operational risks. Foreign issuers and crypto platforms face new compliance burdens.

Only approved financial institutions may issue stablecoins under the act. All offerings must maintain full reserve backing and undergo regular audits. Unregulated stablecoins will be prohibited from U.S. trading platforms, potentially reshaping the $150 billion market.

The bill defines payment stablecoins as digital assets pegged to government-issued currencies, excluding bank deposits and securities. This regulatory clarity comes as global authorities increase scrutiny of crypto's intersection with traditional finance.