Senate Advances GENIUS Act for Stablecoin Regulation

Senate leaders push the updated GENIUS Act, aimed at regulating stablecoins, to a vote before Memorial Day 2025.

The U.S. Senate is advancing the GENIUS Act, marking a significant step toward regulating stablecoins. The bill, updated on May 1, 2025, includes revisions on anti-money laundering and consumer protection measures. With bipartisan momentum, a Senate vote is imminent.

Key senators, including Bill Hagerty and Tim Scott, lead the effort, emphasizing stablecoins’ role in the crypto ecosystem. The legislation introduces a tiered regulatory approach based on issuer size, dramatically altering stablecoin management in the U.S.

Crypto markets experienced volatility as the legislation progressed, reflecting investor uncertainty about regulatory impacts. Significant regulatory changes create consensus and controversy among stakeholders, with some Democratic support waning since new amendments were introduced.

This legislation reshapes regulatory frameworks for larger stablecoin issuers, aligning them under Federal Reserve standards. Smaller issuers can operate under state regulation, maintaining market diversity. This impacts financial markets and inspires future digital asset regulation.

Senator Thune highlighted stablecoins’ importance, underscoring a strategic push for the GENIUS Act. The legislation’s outcome may influence broader governance on digital currency, affecting U.S. crypto policy development and international perspectives.

“Stablecoins are an important part of the crypto ecosystem… They offer the speed and security of the blockchain with the stability and usability of a dollar bill. And they’re a business- and consumer-friendly way of making payments.” – Senator John Thune, Senate Majority Leader